Restrictions on Purchases to be affected by specific details of used cars or injuries

The Guangzhou auto purchase restriction that began on July 1 began to enter another stage. Yesterday, the Guangzhou Municipal Administration of Industry and Commerce began to carry out law enforcement inspections at various automobile sales outlets and received copies of vehicle sales contracts, unified invoice receipts, payment vouchers, and accounting records that had been signed before 00:00 on July 1, 2012. And notarized before 17 o'clock on the 9th.

A personage in Guangzhou told reporters that the specific policies of the government and the manufacturer’s business policies have not yet been introduced, and the impact will not be able to be assessed. In this case, far from being able to talk about the downsizing of the sales force, what we have to do now is to wait and see how it will change.

However, judging from the experience of Beijing's restriction of purchases, Guangzhou's tangible market for used cars will suffer a greater impact. The current second-hand car business is basically branded sales. In the case of restricted purchases, the trade of branded used cars remaining in the market will be drastically reduced. In addition, there will be more and more ratios of redemption of branded vehicles in new car transactions, and dealers will have to increase the use of second-hand car operations to carry out second-hand car transactions in different places. In this way, the tangible market for used vehicles will be hit hard, and the business model will also shift from retail to off-site wholesale.

The Guangzhou market is the sales volume and brand highland of China's auto market, and it is highly valued by major car companies. However, restrictions on purchase will force automakers to reposition the market in Guangzhou and amend their business policies. This will release pressure on Guangzhou dealers, but it will also affect the subsequent competitive landscape. Given the market capacity in Guangzhou, the disorderly price competition will change before the service will become the primary factor in the competition in the auto market.

Now, many experts in the industry believe that in light of the actual situation in Guangzhou, Guangzhou's approach may be inclined to Shanghai's license plate auction. However, the use of cards will significantly increase the cost of car purchases. In this way, low-end models and self-owned brands will suffer the most. High-end models and joint venture brands will not be affected much. The market quota of 120,000 vehicles after the purchase restriction, together with roughly 450,000 replacements, actually has a market impact of around 30%. This is actually equivalent to the low-end models and independent brands out of the Guangzhou market.

Judging from the experience of Beijing's restriction of purchases, purchase restrictions will result in a painful period of around six months, and new car sales will be greatly reduced. However, some joint venture brands have basically recovered to 80% to 90% of previous sales. Moreover, Beijing's purchase restriction has not resulted in a reduction in the number of 4S stores. On the contrary, the number of 4S stores in luxury brands is still increasing. The change is that some 4S stores will change the brand of the agency.

From the time of this purchase restriction in Guangzhou, the experience of having a Beijing restriction purchase was clearly overlooked by Guangzhou. That is, restriction of purchase cannot change the congestion of urban traffic. Restricting purchases is more to change the cost of car purchases by consumers, which in turn changes the eco-environment of the auto market.