Auto-First | Yijiangshan
J.D. Power (Jundi) latest release of the 2022 China auto dealer satisfaction study SM (DAS), the study shows: in fiscal 2021, China's auto market from the impact of the epidemic in the previous year gradually recovered, new car sales rebounded, driven by the increase in new car sales revenue, dealer revenue and profit rose sharply, but the second-hand car business progressed slowly, the proportion of after-sales business declined; in the face of the severe epidemic test, automakers and dealers need to strengthen cooperation to jointly enhance the sustainable profitability of dealers.
According to the study, in fiscal 2021, more than half (52%) of dealers achieved profitability, the revenue of dealers per store rose from 154 million yuan in fiscal 2020 to 172 million yuan, an average increase of 12%, and the average profit of dealers per store increased from 2.74 million yuan in fiscal 2020 to 3.78 million yuan, an average increase of 38%.
The study also found that in the dealer revenue structure, the proportion of new car sales revenue rose from 77% in fiscal 2020 to 84% in fiscal 2021. In contrast, the proportion of used car revenue was only 2%, unchanged from last year, and the proportion of after-sales business revenue fell from 9% in fiscal 2020 to 6%.
This year marks the 15th consecutive year that J.D. Power has released the Auto Dealer Satisfaction Study in China, which systematically measures dealers' perceptions and attitudes towards automakers, and analyzes the issues that manufacturers and dealers pay close attention to from eight dimensions (vehicle model products, marketing, sales team, order and delivery, after-sales team, spare parts supply, professional and non-professional capability training, and business policies and support). All of the information in the study came from the top management of the dealers surveyed, and only the operating conditions of the surveyed dealers from January to December 2021 were surveyed.
Yang Xu, Director of J.D. Power China Auto Dealer Network Quality and Auto Finance Division, said: "The dealer satisfaction index is an important indicator that every OEM with long-term strategic development plan should pay attention to, and it is also an important reference index for investors when making investment choices. The study interviewed the general managers or investors of 2680 4S dealers in the market, covering a dealer network of 45 major automobile brands, and the sample coverage was comprehensive, so as to ensure that the results of the study were sufficiently representative.
In response to the impact of the epidemic, Yang Xu said that the sharp rise in the financial situation of dealers in 2021 is undoubtedly the result of the cooperation between auto manufacturers and dealers. However, under the optimistic financial appearance, we can not relax our vigilance, in 2022 the car market will continue to be negatively affected by the epidemic, auto manufacturers and dealers will face a more severe test of survival, auto manufacturers in reducing dealer inventory pressure at the same time, but also need to further strengthen the support and cooperation of dealers in products, business policies, order delivery, sales and after-sales team and other important matters, to help dealers establish a more sustainable profit structure, in order to help both sides overcome difficulties.
The study also found that the proportion of profitable dealers in luxury brands is the highest, and the proportion of profitable dealers in independent brands has increased the most: the proportion of dealers who have achieved profitability in luxury brands is as high as 63%, which is 13 percentage points higher than that of mainstream brands. Compared with the previous year, the proportion of profitable dealers of independent brands increased by 14 percentage points.
Dealers' satisfaction with manufacturers has steadily increased: the overall dealer satisfaction in the industry is 833 points, an increase of 2 points over the previous year. The overall satisfaction of luxury brand dealers increased by 7 points over the previous year to 841, while mainstream brands stabilized at 831 points.
Japanese brands continue to lead dealer satisfaction, but the regression is obvious: Japanese brand dealer satisfaction is the highest among the five major car series, but it has dropped by 14 points compared with last year, and it is also the only brand in the major car series that has regressed. Korean brands have the largest progress range (+27 points), from 778 points to 805 points.
BMW topped the 2022 China Auto Dealer Satisfaction Study (DAS) luxury car brand list with 865 points, while Porsche (863 points) and Mercedes-Benz (850 points) ranked second and third respectively.
BYD and Dongfeng Honda tied for first place in mainstream car brands with 860 points, and Changan Automobile (859) ranked third among mainstream car brands. At the same time, BYD is also the first Chinese independent brand, Changan Automobile and Baojun (846 points) ranked second and third respectively.
The J.D. Power China Auto Dealer Satisfaction Study (DAS) evaluates the satisfaction of auto dealers with automakers, and is an effective tool for measuring the health of the relationship between manufacturers and dealers and a reference for manufacturers to conduct dealer evaluation and business policy adjustments. Dealer satisfaction scores are on a 1000-point scale. Data collection took place from December 2021 to March 2022.