According to the news on November 24,$Car Dealers/auto Retailers (BK1196.HK)$The decline was the highest. As of press release,$ZHONGSHENG HLDG (00881.HK)$Decreased 6.37% to HK$18.82;$GRAND BAOXIN (01293.HK)$Decreased by 5.31% to HK$0.214;$HARMONY AUTO (03836.HK)$Decreased 4.22% to HK$0.68;$MEIDONG AUTO (01268.HK)$It fell 4.05% to HK$5.21.
According to the news, the October 2023 “Auto Dealer Inventory” survey results previously released by the China Automobile Dealers Association showed that the comprehensive inventory coefficient for auto dealers in October was 1.70, up 12.6% from the previous month, down 3.4% from the previous year, and the inventory level was above the warning line. The China Automobile Dealers Association said that under heavy inventory pressure, dealers are speeding up the pace of sales, digesting inventory, and impacting the annual target.
Furthermore, Xiao Zhengsan, vice president and secretary general of the China Automobile Dealers Association, recently pointed out that major manufacturers have begun the “100 meter sprint” before the end of the year. The automobile distribution sector has entered a period of deep adjustment. Dealers have high inventories and are forced to exchange price for quantity. This increase in sales comes at the cost of abandoning benefits or profits. Bank of China Securities pointed out that the auto market performed well in October, with sales volume rising steadily year on year. The bank expects revenue growth to improve, but due to the price war among a large number of manufacturers, profit growth is under pressure in the short term.