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Car Distribution in China

Market Overview on the Automotive Retail in China: Pangda Groupi, Yaxia Automobile and Grand Orient,  Zhejiang Material Industrial Zhongda Yuantong Group

With the accumulation of wealth among the rich in China, cars are now a daily necessity. Market model of distribution channel of car sale is analyzed in Chin. The future of the car retail channel is predicted. It is considered that the distribution channel should be developed towards car special sale, car embody market, car industry district and internet model of car sale. China’s large-scale automotive distributors are mainly concentrated in economically developed eastern, northern and southern regions, such as Pangda Group in Hebei, Yaxia Automobile in Anhui and Grand Orient in Wuxi, Jiangsu. Zhejiang Material Industrial Zhongda Yuantong Group Co.,Ltd., based on Zhejiang market, has established 4S stores beyond Zhejiang since 2011, in Guiyang, Chengdu and Xi’an for instance. Zheng Tong Group, based on Hubei, Hunan and Inner Mongolia markets, has extended its distribution network to Qingdao of Shandong, Nanchang of Jiangxi, and Shenzhen of Guangdong, etc. in 2011.

New Trend of Automotive Distribution Market: New Car Sales Dominate the Market

There is a new trend among all automotive distribution businesses in China. New car sales accounts for an overwhelming proportion, while used car and after sales service have an enormous space for development. For example, the largest automotive distributor in China, Pangda Group, the new car sales held over 93% of the total revenue in 2008 to 2010.

Distribution of Foreign Brand Cars in China: Mercedes-Benz

Benz has started a reform on distribution in China since the company achieved a 115 percent sales growth in 2010. Currently Benz has two distribution channels in the nation, one of which is Mercedes-Benz China, which mainly sells imported Benz cars while the other is Beijing Benz, which sells China-made cars. The two distribution channels cooperate in brand promotion and work independently in marketing. The manager of Benz hopes the new department could maximize cooperation and minimize divergence.

More on Retail in China (Shanghai, Beijing, Guangzhou) from Daxue Mystery Shopping China