Deloitte 2012 China Auto Dealership performance study
In recent years, rapid expansion in the production capacity of China’s auto industry was accompanied with a slowdown in local automotive markets growth. Concerns such as “liquidity” and “profitability” have begun to bear on these markets, resulting in emergence risks of the country’s auto dealers.
Based on a latest research study focusing on dealerships and dealer groups in Mainland China's market for the world's leading luxury brands and imported vehicles and information gathered through a combination of published financial statements, industry associations, in-depth interview discussions and independent survey questionnaires, the report was put together to provide insight into challenges faced by China’s auto dealers in the present macroeconomic climate and market environment and the resulting risks faced by this country’s auto dealers in their everyday business operations. Deloitte's study suggests the means to implement effective measures for risk management in future corporate strategies, and ways forward for auto manufacturers, auto dealer groups, and independent dealers to manage their businesses.
The main contents of this report include major operational index and risk faced by the dealers, as well as cover the areas of liquidity, profitability, business policy, group acquisitions etc. Key findings of this report validate the model put forward by Deloitte to assist auto dealers and OEMs with risk management and business enhancement. Deloitte's findings conclude with recommendations for approaching the macro environment risks, risks to dealer operations, risks to dealer group mergers and acquisitions, and for overall risk management.