The Ministry of Commerce recently issued the "Automobile Sales Management Measures (Draft for Comment)" (hereinafter referred to as the "New Measures"), and will be formally implemented within this year. This new "Measures", regarded by the industry as a "basic law" in the field of automobile circulation, has caused widespread concern. What is the original intention of the new "Measures"? What new breakthroughs? What problems need to be solved in the field of automobile circulation? We interviewed the relevant person in charge of the Ministry of Commerce, circulation companies and industry experts.

The old "Measures" are not suitable for the needs of the automotive market

Before the new "Measures", in 2005, China introduced the "Implementation Measures for the Management of Automobile Brand Sales" (hereinafter referred to as the "Measures"), and implemented authorization management for automobile sales.

Xiao Rongchen, director of the Policy Department of the Department of Market System Construction of the Ministry of Commerce, said that the introduction of the old "Measures" eased the confusion of the automobile sales market at that time and promoted the rapid and steady development of China's automobile market for many years.

The authorization system forms a “closed loop” for producers, distributors and consumers. The advantage is that it is easy to manage and to a certain extent it is convenient to guarantee the quality of service. However, the disadvantage of closed loop is that it limits and reduces competition. This contradiction has become increasingly prominent as the supply and demand relationship in the automotive market has changed.

On the one hand, the original equal relationship between producers and distributors is gradually out of balance, and producers often interfere with dealers' operations. On the other hand, due to insufficient competition, the automobile sales market has experienced problems such as declining service quality, high price, and compulsory consumer purchase of insurance, and there is a growing trend.

"There are data showing that the zero ratio of some brands (the price ratio of parts to the whole vehicle) is as high as 12:1." An industry insider said that such a high zero ratio has spawned many strange phenomena and infringed consumer rights. For example, “repairing and repairing”: Some small problems of consumer cars can be solved by simple repairs, but they are often required to replace parts.
The contradiction between automakers and dealers is also increasing. Under the authorization management mode, after the production company produces the car, it will be sent to the dealer at the first time. When the market is in short supply, this model has no problem. However, when the market supply exceeds demand, there will be a problem of so-called “pressure inventory”: although the dealers sell cars unsuccessfully, the automakers still force the dealers to get more cars, which leads to increased dealer inventory and capital pressure.

"The old model is no longer suitable for the development of the automotive market." Xiao Rongchen said that in conjunction with the new situation, the Ministry of Commerce began to study and formulate a new "Measures."

The new "Measures" encourage the diversification of car sales models

Xiao Rongchen said that the new "Measures" focus on the supply side, on the one hand fully respect the market, by reducing monopoly and increasing competition, to better play the decisive role of the market in the allocation of resources; on the other hand, encourage enterprises to change according to demand, bold Innovation is developing in the direction of “more complete competition, more channels, more choices, and better service”.

The biggest highlight of the new "Measures" is to encourage the diversification of automobile sales models." Qin Zhi, CEO of Auto House, believes that the new "Measures" clearly encourages the development of a shared and economical vehicle sales and service network, which mentions promoting automobile circulation. Model innovation and active development of e-commerce. This means that the era of the 4S shop model as the only form of authorized sales has completely ended, and the symbiosis of emerging sales channels and traditional sales systems has become a trend.

Qin Zhi said that the new "Measures" have brought great confidence to the new car e-commerce industry. Since 2013, the car home has begun to develop a new car e-commerce business, and is committed to providing consumers with a better experience and service by building an efficient new car trading platform. "The new "Measures" not only let us feel that we have chosen the right direction, but also released positive signals to manufacturers and distributor partners, and promoted them to actively embrace the e-commerce platform with a more open mind to jointly improve the efficiency of the industry." Say.

Regarding the monopoly of auto parts sales channels, the new "Measures" stipulates that "suppliers shall not restrict the sales targets of parts manufacturers; nor may distributors and after-sales servicers resell parts." Some analysts believe that this means the price of parts. Can be greatly reduced, different platforms to fight prices, fight services, and ultimately benefit consumers.

Parallel imported cars are getting more and more open

Article 9 of the new "Measures" states that "a dealer selling a car that has not been authorized to be sold by a supplier, or an imported car that has not been authorized to be sold by an overseas automobile production enterprise, shall make a special express and reminder to the consumer in writing, and clearly Inform consumers of the responsibility of the main body." Many industry insiders believe that this will be conducive to the development of the parallel import of the automotive industry.

Parallel imported cars refer to cars that are purchased by traders from overseas markets without authorization from brand manufacturers and introduced into the Chinese market for sale.

“We feel that the policy is more and more open to parallel imported cars.” Qin Zhi said that in the past year, Shanghai, Guangdong, Fujian, and Tianjin Pilot Free Trade Zones have launched pilot cars for parallel imports. Up to now, the number of parallel import point companies certified by the four free trade pilot zones has reached 80.

Chen Hong, the founder of the Rolling Thunder Import Car, believes that by further liberalizing parallel imported cars, encouraging competition and breaking monopolies is in line with China's overall direction of playing a decisive role in market allocation resources. However, parallel imported cars still face some obstacles. For example, many auto brands have implemented global joint guarantees, but some auto brands have not implemented joint guarantees in the Chinese market. As a result, these brands of parallel imported cars can only be detached from the warranty, allowing consumers to choose more concerns.

Xiao Rongchen said that for parallel imported cars, the policy is open. In the future, specific measures will be introduced to further resolve the policy bottlenecks of parallel imported cars, making parallel imports one of the car purchase channels that consumers can choose, trust and guarantee.

Guide automotive companies to actively improve services

The new "Measures" proposes that "for those who refuse to make corrections within the time limit, the competent commercial authority shall give a warning or impose a fine of up to three times the illegal income of not more than 30,000 yuan depending on the circumstances; if there is no illegal income, it shall not exceed 10,000 yuan. Fine." Some people think that for auto companies that are "rich and rich", such penalties are too light and the restraining effect is limited.

Xiao Rongchen said that the new "Measures" to establish penalties must first be based on the superior law, the "Administrative Punishment Law." The current penalties for the new "Measures" are formulated in accordance with the "Administrative Punishment Law" and the relevant documents of the State Council.

In terms of the amount, the fine is a big deal for auto companies, but the signal of punishment release is important: punishment can not only affect consumer decision-making, but also increase the credit cost and brand cost of the company. The cost of non-compliance is multiplied by the “multiplication effect”. “I believe that heavy-duty brands and responsible auto companies will focus on improving their services and avoiding penalties under the guidance of signals.”

Xiao Rongchen said that China's auto industry has been developing at a high speed for so many years, and the market has undergone great changes. It can be said that it is “slowing growth rate, structural optimization, and power conversion”. Now the first-tier cities are basically saturated, and demand in second-tier cities is slowing. The auto industry has entered an adjustment period, and the days of “lying for money” are gone forever.

"The new "Measures" actually release the signal of 'accommodating demand changes and actively improving services' to auto manufacturers and dealers." Xiao Rongchen said that the market is the best propeller for improving services. Auto companies want to take a slice of the market and have the motivation to improve their services. This is the power of the market and we should respect it.

Side Scuttle

Side Scuttle,Marine Side Scuttle,Ship Porthole,Boat Porthole

Jiangsu Zhongcan Marine Equipment Co.,Ltd. , https://www.anchorchainzc.com