|By PR Newswire||
|March 28, 2014 01:35 PM EDT||
DALLAS, March 28, 2014 /PRNewswire-iReach/ -- China's auto industry develops rapidly after joining WTO. China became the world's largest auto producer and seller in 2009. In 2013, the production volume of automobiles was 22.1168 million, up by 14.76% YOY, while the sales volume was 21.9841 million which went up by 13.87% YOY. Rapid growth of production and sales of automobiles in China promotes the development of automobile distribution industry.
Sales modes of autos in China encompass franchised stores (1S-5S), automobile supermarket, automobile trade market and automobile parks, each with its own distinguishing features. According to CRI, the number of auto distributors in China, mostly independent stores, reached 60,000 with over 20,000 4S stores by the end of 2013. Over 1,000 auto 4S stores are yearly established while a considerable amount of them close down because of poor management. There are over 1,000 new vehicle markets and automobile parks, over 1,000 used vehicle markets and over 2,000 professional markets of auto accessories in China. Due to regulation and implementation of market competition and city planning, the automobile industry exhibits a trend of centralized trading while medium and large cities undergo the construction of large-scale automotive cities and parks, representing strong momentum of growth.
The concentration rate of automobile circulation industry is growing rapidly in China. In 2010, the number of dealers from the top 100 corporations of automobile distributors reached 3,000, accounting for 5% of the industry. The sales volume of the 5% distributors was 4.994 million, which was 22.7% of the national gross sales volume. In China, the profit margin of many distributors is higher than that of certain listed automobile manufacturers.
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The automobile market in big cities is basically saturated and exhibits sluggish growth while that in medium and small cities is developing rapidly. For automobile distributors, the market is the future source of profit. Since auto manufacturers failed to recognize the great potential, there are less sales channels and competition in the market. Meanwhile, the cost of land and labors in medium and small cities is relatively low.
In December 2011, the Guidance on the Development of Automobile Circulation Industry in the Twelfth Five-Year (2011-2015) Plan issued by Ministry of Commerce states that China will strive to increase the concentration rate of automobile distribution industry and raise the proportion of top 100 automotive retailers' sales revenue in the industry to 30% by the end of 2015. The number of regional auto circulation enterprises with the sales revenue of CNY 10 billion is expected to reach 30 while that of large-scale auto circulation enterprises with the sales revenue of CNY 100 billion is estimated to be 3-5. It is foreseeable that 2014-2015 will be the years of mergers and acquisitions for auto circulation industry in China. Since the automobile distribution industry covers after-sales service and sales of used vehicles with a large amount of potential consumers, its growth rate is expected to be much higher than that of auto manufacturing industry.
Through this report, the readers shall acquire the following information:
-Economic and Policy Environment in the Development of Automobile Distribution Industry in China
-Distribution Model of Autos in China
-Competition Status of Automobile Distribution Industry in China
-Major Auto Distributors in China market
-Development Trend of Automobile Distribution Industry in China
The Following Enterprises and People Are Recommended to Purchase This Report:
-Automobile Trade Enterprises
- Investors/ Research Institutions Focusing on Automobile Distribution Industry in China
Comprehensive Table of Contents and more for the report "Research Report on Automobile Distribution Industry, 2014-2018" is available at http://www.chinamarketresearchreports.com/114765.html .
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Media Contact: Priyank Tiwari, China Market Research Reports, + 1 888 391 5441, [email protected]
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