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New Release on Automobile Distribution Industry, 2014-2018 - Market Research Report

ResearchMoz.us include new market research report " Research Report on Automobile Distribution Industry, 2014-2018: Indsutry Size, Shares, Growth, Analysis, Trends And Forecast" to its huge collection of research reports.

 

Albany, NY -- (ReleaseWire) -- 04/03/2014 -- China’s auto industry develops rapidly after joining WTO. China became the world's largest auto producer and seller in 2009. In 2013, the production volume of automobiles was 22.1168 million, up by 14.76% YOY, while the sales volume was 21.9841 million which went up by 13.87% YOY. Rapid growth of production and sales of automobiles in China promotes the development of automobile distribution industry.

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The concentration rate of automobile circulation industry is growing rapidly in China. In 2010, the number of dealers from the top 100 corporations of automobile distributors reached 3,000, accounting for 5% of the industry. The sales volume of the 5% distributors was 4.994 million, which was 22.7% of the national gross sales volume. In China, the profit margin of many distributors is higher than that of certain listed automobile manufacturers.

The automobile market in big cities is basically saturated and exhibits sluggish growth while that in medium and small cities is developing rapidly. For automobile distributors, the market is the future source of profit. Since auto manufacturers failed to recognize the great potential, there are less sales channels and competition in the market. Meanwhile, the cost of land and labors in medium and small cities is relatively low.

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In December 2011, the Guidance on the Development of Automobile Circulation Industry in the Twelfth Five-Year (2011-2015) Plan issued by Ministry of Commerce states that China will strive to increase the concentration rate of automobile distribution industry and raise the proportion of top 100 automotive retailers’ sales revenue in the industry to 30% by the end of 2015. The number of regional auto circulation enterprises with the sales revenue of CNY 10 billion is expected to reach 30 while that of large-scale auto circulation enterprises with the sales revenue of CNY 100 billion is estimated to be 3-5. It is foreseeable that 2014-2015 will be the years of mergers and acquisitions for auto circulation industry in China. Since the automobile distribution industry covers after-sales service and sales of used vehicles with a large amount of potential consumers, its growth rate is expected to be much higher than that of auto manufacturing industry.

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