Auto dealers had the highest declines. As of press release, Guanghui Baoxin (01293) fell 6.03% to HK$0.187; MeiDong Auto (01268) fell 4.59% to HK$3.53; and Zhongsheng Holdings (00881) fell 4.06% to HK$17.02.
The Zhitong Finance App learned that car dealers had the highest decline. As of press release, Guanghui Baoxin (01293) fell 6.03% to HK$0.187; MeiDong Auto (01268) fell 4.59% to HK$3.53; and Zhongsheng Holdings (00881) fell 4.06% to HK$17.02.
According to the news, the latest “China Auto Dealer Inventory Warning Index Survey” recently released by the China Automobile Dealers Association shows that in November 2023, the inventory warning index for Chinese auto dealers was 60.4%, down 4.9 percentage points from the previous year, up 1.8 percentage points from the previous month. The inventory warning index is above the boom and bust line, and the automobile distribution industry is in a slump range.
Furthermore, in December, many car companies, such as BYD, Guangzhou Automobile Group, and Nezha Auto, launched various forms of car purchase promotions such as price reductions, subsidies, and interest-free car purchases, in exchange for price in exchange for volume, and sprint to annual sales targets. The Distribution Association previously issued an article stating that in the first half of 2023, dealers were clearly impacted by the price war. About 50.3% of distribution companies face losses. Specifically, the gross profit from new car sales fell to 2.8%, and the gross margin for after-sales service increased slightly to 38.9%. Although profitable companies accounted for 35.2%, dealers' earnings expectations for the whole year declined to varying degrees.