The development of the industry to a certain extent needs to think about how to develop next? In the past 10 years, the automotive industry in China has been experiencing rapid growth. Finally, the Chinese auto market began to show a saturated situation. The market demand fell and the auto industry was in a weak market this year. The internal and external pressures have caused many dealers to be overwhelmed and even appear to have paid to run. For dealers, it is time to think about developing new roads in the future.

One of the important reasons why distributors are in trouble is the unscientific model of car sales. This year, China's auto sales have only grown at a slower pace, and there has been no shrinkage. In other words, the Chinese auto market has not disappeared. However, due to the excessive dependence of dealers on new car sales, the demand for new cars has not been able to drive the economic development of the entire automobile industry. It is understood that in the European and American countries where the auto market is very mature, the income structure of dealers is more balanced: 55% comes from new car sales, 32% from used car sales, and 13% from parts and after-sales services. Xiao Bian thinks that if Chinese car dealers want to emerge from the predicament, they must change the traditional model that completely relies on the sales profits of new cars.

1. Grasp after-sales profit In fact, the great profits of the car appear in the after-sales business. Automotive spare parts, automotive finance and insurance businesses provide a large profit margin for after-sales services. Because, the profits of financial loans and insurance are relatively transparent and stable. Therefore, maintenance and automobile decoration should be the focus of current dealer business development.

2. The development of used car market and new car sales data are bleakly different. The used car market revealed slight warmth. Most used cars in the Chinese market are replaced with new car sales, that is, trade-in replacement. The market for used cars is mainly concentrated in third-tier cities and rural areas. For such consumers, they pay attention to economic application. With the development of rural areas, farmers gradually need suitable vehicles to help their production activities and facilitate their lives. This is evident in the consumer market for used cars. Standardize the operation of the used car market, keep up with the after-sales service of used cars, and realize the redevelopment of the automobile market by changing the business model. This is suitable for all car dealers.

The new profit growth point is that dealers need to consider the whole. Xiao Bian thinks that it is necessary to make up for the inadequacies of the traditional business model and broaden its profit channel.