Chinese automobile dealerships continue to suffer increasing financial
pressure. In 2014, 70 percent to 80 percent of automobile dealerships in
the country are suffering deficits, a report appearing in the National
Business Daily revealed today, citing statistics from the China Auto
Dealers Chamber of Commerce.
As Dongfeng Honda dealerships in Beijing halt procurement new vehicles,
media reports of confrontations between dealerships and the joint
venture have begun showing up. At last month’s Chengdu Motor Show,
Dongfeng Honda Executive Vice President Chen Binbo officially commented
on the matter. In a statement quoted by the Beijing Times, Mr. Chen
explained that Beijing dealerships’ inability to procure new vehicles
from the manufacturer is due to the JV’s reorganization of its
dealership inventory structure as it prepares for market releases of new
models. Currently Dongfeng Honda dealerships rely excessively on sales
of the CR-V, which in turn hinders sales of the JV’s models. In
response, Dongfeng Honda will implement a dealership evaluation system;
dealerships performing the poorest in conducting sales work for the JV’s
newest products will be eliminated.
In early 2015, the CADCC began a nationwide dealership satisfaction
survey. The survey covered a series of points, including brands,
products, certifications, network construction, government policies,
sales management, after sales service, management intervention and
investment returns. Satisfaction ratings for investment were the highest
among the eight categories, totaling 40 percent.
According to statistics from the China Association of Automobile
Manufacturers, Dongfeng Honda sold just 5,996 CR-V SUVs this July; that
amount is 63 percent less than the number sold the previous month and
less than 56 percent than the number sold a year ago. The fall in CR-V
sales was a major factor behind the overall decline in Japanese brands’
automobile sales in July.