·2014 China Automobile Dealers Association Annual Meeting held in Haikou

On November 7, Bao An Greater China President Ange, BMW (China) Automobile Trading Co., Ltd. President Xu Zhijun, Beijing Mercedes-Benz Sales and Service Co., Ltd. President and CEO Ni Lan, Senior Executive Vice President Li Hongpeng, Executive Vice President Duan Jianjun and other senior executives of multinational corporations and the top 100 distributors in the field of automobile circulation participated in the 2014 China Automobile Dealers Association Annual Meeting held in Haikou.
Many domestic luxury car brand automakers and mainstream dealers are paying attention to the revised “Automobile Brand Sales Management Measures”. It is the Ministry of Commerce that has taken the lead in revising this policy. “The Ministry of Commerce will cancel the market entry barrier and focus on developing a standard system covering the whole industry,” said Chen Yuehong, director of the Planning Department of the Marketing System Construction Department of the Ministry of Commerce.
At present, the Ministry of Commerce is not only modifying the “Implementation Measures for the Management of Automobile Brand Sales” (hereinafter referred to as the “Measures”) that have been implemented for ten years, but also researching and formulating the regulation of new car circulation, scrapping of used cars, and operation of auto parts market. A number of rules and regulations.
On October 1 this year, after the official suspension of the auto dealer registration system, the SAIC is gradually reducing its intervention in the auto market. It plans to regulate the development of the auto industry by introducing industry norms and systems. "The future sales channels for unauthorized operations will also be established." The relevant person in charge of SINOMACH revealed. On the basis of the approval of the parallel import pilot of the Shanghai Free Trade Zone, the parallel import automobile market will also heat up with the entry of more pilots in the future.
Ministry of Commerce wants to reduce administrative intervention
Shen Jinjun, president of China Automobile Dealers Association, introduced that China's auto market entered a stage of restorative growth in 2013. In 2014, auto sales in the first three quarters reached 1,70,900, an increase of 7.04% year-on-year, a decrease of 5.7 percentage points over the same period of the previous year. At the same time as the market growth slowed down, dealer inventory gradually increased.
In October of this year, the dealer inventory warning index was 55.0%, an increase of 9.2 percentage points from the previous month and 5 percentage points beyond the warning line. This is the fifth month of this year that exceeded the warning index by 5 percentage points.
Regarding the status quo of the industry, Shen Jinjun believes that “the problems of imperfect regulations in the industry and unsound standards in the industry are one of the important factors restricting the development of the industry.” Therefore, various departments in China are currently launching a series of reform measures. Chen Yuehong said, "The Ministry of Commerce will reduce the government's intervention in the market, cancel the entry barrier, and develop a standard system covering the entire industry."
It is understood that the "Measures" as the most important policy restricting the development of the current automobile circulation industry, the Ministry of Commerce is on the basis of extensive investigation and solicitation of industry representatives and experts, and accelerate the revision. The new version is expected to be officially implemented in January next year. On the basis of the revision of the Measures, the Ministry of Commerce also plans to formulate industry standards for the operation and management of automobile circulation enterprises and the management and management of automobile parts market.
"The Ministry of Commerce plans to adjust the VAT collection policy for used car transactions, and change the full amount to the difference; conduct research on the establishment of a second-hand car temporary title certificate system, convert the second-hand car property transfer registration into temporary property rights registration, and promote the circulation of used cars." Chen Yuehong said .
In addition, in response to the scrap recycling of automobiles, the Ministry of Commerce is studying and formulating the national scrap car recycling and dismantling system, guiding the owners to scrap the vehicles rationally through financial means and different car age differential insurance policies; for the emerging emerging forms of online transactions, the Ministry of Commerce It plans to develop standards for the implementation of online trading service specifications for used cars in emerging markets.
"The State Administration for Industry and Commerce also plans to cancel the market access conditions on the basis of canceling the dealer registration system, and regulate the automobile market by formulating rules and regulations including automobile sales and vehicle maintenance contract demonstration texts." Liu Hongwei, Director of the Department of Management, said.
Good parallel imported car
Under the premise of the government department gradually withdrawing from market intervention and canceling the market entry threshold, the non-authorized operation mode will also gain development opportunities. The parallel import transaction model, as an important form of trade for unauthorized operations, is expected to heat up.
The so-called parallel import is for the authorized importers of automobile brand enterprises, that is, the non-authorized importers import cars from domestic related brands and retail markets to domestic sales, and form a parallel relationship with authorized import channels. Vehicles that enter China through parallel imports are called non-standard cars, such as American cars.
According to a person familiar with the matter, "The most important feature of the revision of the "Measures" is the establishment of a non-brand authorized sales channel." As a result, vehicles imported in parallel will receive legal status. On October 29th, the parallel pilot of the Shanghai Free Trade Zone was officially approved. This is an important signal for the legalization of parallel import status.
Chen Yuehong said, "The Ministry of Commerce will actively support the Shanghai Free Trade Zone to carry out parallel import pilots, and explore useful ways to innovate imported automobile sales models and improve the automobile consumption management system."
It is reported that in the future, the Shanghai Free Trade Zone will establish market access standards. Based on the existing SAIC maintenance points and brand 4S stores, four new multi-brand comprehensive after-sales service stores and social repair shops will be built through the global procurement channels. And the cooperation of dealers outside the district to establish a parts maintenance system to solve the problem of the parallel import development of the after-sales maintenance insecurity.
"Based on the approval of the parallel pilot of the Shanghai Free Trade Zone, next year China will be expected to approve another one or two pilots to promote the development of parallel imports. If the sales volume of the imported car market increases by 10% next year, then the increase in parallel import sales will increase. It is expected to reach 15%." The relevant person in charge of SINOMACH said. According to the forecast of SINOMAC, the parallel import scale is expected to reach 110,000 this year, compared with 83,900 units in the same period last year, an increase of 31%.
Imported car fuel consumption or 3C certification
The industry believes that the parallel import of this form of automobile trade will not replace the general agent or general dealer system currently implemented by imported cars.
Cui Dongshu, deputy secretary-general of the National Passenger Car Association, said in an interview with the reporter of "Daily Economic News" that "although the government will reduce the intervention in the market and let the market develop according to its inherent laws, the current automobile manufacturers still have The most important source of vehicle supply, while still controlling most of the sales channels, they will still dominate the market."
A luxury car brand dealer said, “At present, the import of many non-regulated cars is still carried out through authorized dealers. They will not import non-standard cars on a large scale. Because non-standard cars have lower prices, models The configuration aspect is more in line with the characteristics of the market demand. If the scale of the non-standard car is increased, it will undoubtedly affect the sales of the imported cars.
In fact, for some models, non-standard cars have become an important part of their imports. For example, all imported cars of the Toyota Land Cruiser 4000 are non-standard cars, while the Mercedes-Benz GL350 non-standard cars account for 96% of their models.
At the same time, the new regulations enacted by various ministries and commissions will also have an impact on the development of the parallel imported automobile market. According to the relevant person in charge of a car circulation association, “the future fuel consumption will be included in the 3C certification system. The models with insufficient fuel consumption will cancel the 3C certificate, and those models that have not obtained the 3C certification will not be imported.”
According to the statistics of SINOMACH, most of the non-standard cars currently sold in China are SUVs with higher fuel consumption and displacement. Among them, Prado, with a displacement of 2.7L, accounted for the import of non-standard cars in 2013. 77%. Therefore, in the future, the new regulations mentioned above will inevitably affect the import of these large-displacement models.

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