BYD dealer "back network" survey

On the busy airport road side of Chengdu, scaffolding was erected outside the BYD showroom. This is the most prosperous car sales street. On both sides of the road less than 10 kilometers, nearly 60 car 4S shops are gathered.

Airport Road was once a blessing to BYD. In the past, BYD F0 Southern District Sales Champion - BYD Pingtong Chengdu Airport Flagship Store was located here. It is also a sad place for BYD. The Champion Store Pingtong has withdrawn from BYD Channel and turned to Geely, a competitor, to become a member of its “Shanghai Yinglun” brand.

"First Financial Daily" found at the scene, a BYD Auto 4S shop opposite Pingtong, is also removing the shop signs.

This year, BYD dealers in Chengdu, Beijing, Zhejiang, Shandong, Henan, and other places, there are "back network" situation.

Gold dealer "exit network"

Since the industry broke out of BYD Chengdu’s “Gold” dealers in the industry in May of this year, the incidents of BYD Auto’s 4S store retired from the network have emerged one after another and eventually evolved into a nationwide out-of-network crisis. In BYD's seventh year of establishment, BYD Automobile, which is known for its miracle of development and its miracle of sales, has faced the most important crossroads in the Chu song that dealers played.

On June 26, 2009, Pingtong opened its doors in the firecrackers roar. The 1,700-square-meter exhibition hall and the customer lounge area decorated with solid wood flooring demonstrated the rare luxury of the 4S shop. The performance of Pingtong in that year was also in line with the magnificent exhibition hall. In 2009, Pingtong sold a total of nearly 1,500 F0 cars and became the F0 sales champion of BYD A2 Southern Region.

No one expected that one year later, this Chengdu gold car sales shop would withdraw from BYD's sales network, which opened the nationwide BYD auto dealers' exit. The direct reason for the gold shop to withdraw from the net is that BYD disregards the ability of the dealers to bear the burden and has caused the consequences.

"When the inventory is highest, F0's inventory is even close to 1,000, so that the funds used up to almost 35 million. Even with the help of third-party financial institutions, you also need to pay 30% of their own, nearly 10 million in payment." Zeng Pingtong A person in charge said that BYD’s near-crazy press has caused the store's capital chain to be in a dangerous situation.

Unlike other car companies, BYD does not have a one-year sales task for Pingtung. Instead, the target is determined once a month, and the dealers with strong strength and high performance will have higher task of lifting cars. According to the reporter’s understanding, in fact, Pingtong submitted a withdrawal application in January 2010, and it did not sell its inventory until May.

"Whenever a bill of exchange expires, it is the time when we have the most difficult time. Inventory can't be digested in 3 months. We get money to pay for the bank. Sometimes we even borrow money from the boss of the group. It also accepts bills of exchange," said the person in charge.

On the one hand, the sales of franchise stores have been substantially increased. On the other hand, BYD has continued to increase new sales outlets in the region, which has led to more difficult franchise operations. Take the Chengdu market as an example. Before 2009, there were only 3 stores on A2, which gradually increased to 5 after 2009.

In Chengdu, there are 14 dealers in BYD A1, A2, and A3. The local sales of the best Shanghai Volkswagen only 13 dealers in the local.

in stock! in stock!

"Inventory is very big, and the price between dealers is very strong, forcing us to sell even if we lose money." People in the BYD shop said that if a car's profit is 9,000 yuan, only 1,000 dealers can get a hand. yuan.

The other eight BYD dealers in Chengdu interviewed by this reporter also pointed to the mandatory Yahuo.

"Actually, we also want to retreat. Now it is very difficult. Only a lot of things have caught us and we can only drag it. If you want so much margin, so much inventory, you really want to retreat, then the loss is still very high. "A big dealer," said one dealer, even if it was a hot car market last year, they did not make any money. "Last year's stocks were so scary that people were dead." At most, the inventory cycle reached more than three months.

In the automotive industry, a reasonable inventory factor is usually considered to be less than 1.2, which means that the inventory quantity is equivalent to 1.2 months of sales. An inventory coefficient of more than 1.8 means that the distributor's funding chain is at stake. And BYD dealership inventory reaches 3 months, it is a very dangerous situation.

However, there are also dealers believe that this withdrawal crisis does not mean that BYD has been embattled. "In fact, BYD's production cut this year is very correct. From 400,000 vehicles, 800,000 vehicles cannot guarantee quality. Dealers also have great pressure." A BYD dealer in Chongqing said that at present, BYD has adjusted its sales volume to 600,000 vehicles.

In fact, BYD has rapidly expanded its sales network to more than 1200 in the short period of five years after entering the auto industry, and has also verified that dealers are optimistic about this investment behavior.

A Shanghai BYD 4S store marketing manager told this reporter that although BYD implemented sub-net sales, the number of outlets was large, but because different network distributors could not provide sales and service for the customer's network, “at least after-sales service profit is Guaranteed."

"If we have a store with 2,000 cars, we will not sell cars in the future. Light maintenance will make money," said the market manager.