China Automobile Dealers Association: Interpretation of the 2022 Chinese Automobile Brand Competitiveness Research

The data for this brand comprehensive competitiveness research report comes from national sales data, dealership operation data under the top 100 dealer groups, dealer voice survey data, and qualitative evaluations by experts in the automobile distribution industry. A comprehensive analysis is conducted from the perspective of brand series and brand level, and a comprehensive competitiveness list is released for luxury brands, mainstream joint venture brands, and mainstream independent brands, aiming to provide dealer investors with a reference for brand management selection and dealer partners with a reference for core indicators of daily operations.

Quantitative evaluation: interpretation of operating risk indicators

The business risk module consists of revenue growth rate, gross profit growth rate, sales growth rate and market share indicators, which comprehensively reflect the growth space of the brand and the brand power reflected in the market.

Quantitative evaluation: profitability

Profitability is composed of three basic indicators: return on assets, total gross profit margin, and new car gross profit margin ( GP3 ), as well as two related indicators: used car gross profit margin and after-sales gross profit margin. It comprehensively analyzes the dealer's sales profit creation ability (including sales and after-sales capabilities) in the process of operating the brand, and measures the net profit that the dealer can generate per unit of assets.

Quantitative evaluation: operational efficiency

Operational efficiency is composed of three basic indicators: total asset turnover rate, inventory coefficient, and spare parts turnover days, and two related indicators: monthly average sales volume per sales consultant and monthly average number of vehicle pickups per service consultant. The first three indicators comprehensively reflect the operational efficiency of a single store, while the last two indicators reflect the work efficiency of key personnel.

Quantitative evaluation: management ability

Management capability consists of three basic indicators: profit retention rate, pre-tax profit rate, and expense rate, as well as one related indicator: zero-service absorption rate. It analyzes whether dealers are able to retain more profits and convert investment into more returns through refined management of expense expenditures during the operation process.

Qualitative evaluation

The qualitative evaluation shows the survey scores and growth rates of each brand in the Voice of China Auto Dealers in the first half of 2022. The analysis includes more than 90 subjective evaluations of the five major aspects of the brand value, partnership, business decision-making, product planning and manufacturer support of the dealers during the operation process.

At the end of the report, Ms. Wang Chunyan released the 2022 China Auto Brand Comprehensive Competitiveness List. The list is based on a comprehensive analysis of both quantitative and qualitative aspects to produce a comprehensive competitiveness column chart for each brand level. The results are presented in the form of a percentage score, which provides a more intuitive understanding of the comprehensive competitiveness of each brand. Ms. Wang Chunyan called on brands with scores below 60 to maintain close communication with dealers in 2022 , consider issues from the perspective of dealers, and strive for win-win cooperation between manufacturers and dealers to overcome difficulties together.