Early in year 2006, it has been predicted by the world’s leading market research company, AC Nelson, that the rising level of consumption tax and fuel surcharges did not lower people’s desire to buy cars. Instead, the car retailing industry in China showed strong and vigorous development tendency. According to Nelson’s telephone interview in May, 2006, over 13% consumers in the three major cities Beijing(北京), Shanghai(上海) and Guangzhou(广州) have plans to buy private cars in the following 12 months. In 2004, the result was only 6%. Also, it was showed that Chinese consumers are not satisfied with only having private cars, but also willing to increase investment in car maintenance and beauty.
In year 2009 and 2010, the car industry in China saw an explosive development. In 2011, due to the slow resurgence of global economy and the adjustment in China’s macro economy, the market experienced slow and steady development. In the twelfth five-year-plan of the Ministry of Commerce, the turnover of the top 100 automobile retailing enterprises should exceed 30% of the total turnover of the industry.
In year 2011, the No.1 automobile retailer in China was China Grand Automotive Services Co. Ltd, with an annual turnover of 64,088 million yuan. It has been the largest passenger car seller in China for three years successively. With its headquarters in Shanghai(上海), it has over 380 automobile 4s stores in over 12 districts such as Guangxi(广西), Henan(河南), Anhui(安徽) and Chongqing(重庆). Over 80 domestic and foreign famous brands like Buick, Volvo, Volkswagen, Skoda, Nissan and Cadillac have all established cooperation relationships with it.
Pangda Qimao Group follows with an turnover of 554,55 million yuan. Up to the end of year 2011, it has established 984 stores and 273 other forms of markets in Mongolia and 26 provinces in China. Most domestic, European, American, Japanese and Korean famous brands like Audi, Kia, Mitsubishi, Benz and Subaru have cooperated with it.
The following retailers are Sinomach Automobile Co.Ltd , Lixingxing(利星行) Group, and Zhongsheng(中升) Group. Their annual turnover have all exceeded 400 million yuan.
In 2011, the total income of the top 100 car retailers was 851,527 million yuan, an year-on-year growth of 41%. They together have 329,400 employees, an year-on-year growth of 23%. East China and Beijing were the districts where the highest sales revenue was achieved. However, retailers are working on the market in second and third tier cities in China. The ratio that first tier cities take in the retailing network dropped from 21% to 15% in 2011. The ratios of second tier cities, third tier cities and smaller were, respectively, 35%, 28% and 22%.
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Credit Photo: Pcauto