Dealer's auto sales margin dropped

According to statistics, during the first half of this year, the domestic automotive industry recovered and the auto market sales grew rapidly. However, the market competition became more fierce, the auto prices declined, and the car dealers’ sales revenue increased slightly, but the gross profit of auto sales declined. In the first half of this year, the sales revenue of the six listed dealers totaled 80.774 billion yuan, a slight increase of only 1.6% year-on-year; gross profit of automobile sales totaled 3.991 billion yuan, a year-on-year decline of 8.3%.

Car sales contributed to the total revenue and gross profit contribution. The auto sales business is still the most important source of income for dealer companies. The revenue contribution rate of the business is high, but as the market competition intensifies, the price war gets worse and the car sales profits become thinner. , The dealers mainly rely on after-sales services to profit, and the dealership's auto sales business has decreased their contribution to revenue and profit. The gross profit margin of the automobile sales business also showed a downward trend.

In the first half of this year, the sales revenue of the auto giants of the Group, Yaxia Auto, Yongda Auto, Zhongsheng Holdings, and Zhengtong Auto all accounted for nearly 90% of the total revenue of the company, but they all declined year-on-year. (Since Shenhua’s auto sales revenue is higher than its total revenue, it does not account for its contribution to car sales revenue, but it can also be seen that its auto sales revenue is much higher than its other business income.)

The relative income of up to 90% of the contribution rate, the car sales business contribution to gross margin is lower, but also lower than the same period last year. In the first half of 2012, among the six companies in the statistics, in addition to Yaxia Auto, the gross profit contribution rate of automobile sales of the other five companies exceeded 50%, of which Shenhua Holdings was as high as 69.0%. In the first half of the year, except for the gross profit contribution rate of the Group's automobile sales, which was 50.5%, the gross profit contribution rate of other companies’ automotive sales fell below 50%, of which Shenhua Holdings even fell to 28.0%.

The gross margin of car sales of the six companies was reduced. Among them, the highest is a huge group, the gross profit rate of car sales is 7.2%, which is lower than the 7.2% in the same period of last year. The lowest is Shenhua Holdings, which is only 0.4%, and it is down 1.5 percentage points compared with the same period of last year.