China's Auto Sales Model Is Discussed

Since the 18th century, along with the development of the manufacturing industries, modern car industries developed and perfect sales , maintenance & service systems formed in main western industrialization countries one after another. Different from western industrialization countries, car industries in China didn't start until the 1950s after liberation. Car sales, maintenance & after-sales service in China didn't form an effective sales and service mode in the past 40 years because of the restriction of the planned economy system. Until in the 1990s, along with all-arounded open interm of economy in China, car industry in our country has been developing rapidly and civilians are rich enough to buy cars. Various kinds of car sales modes such as car trade markets, car 4S stores, car supermarkets, car industrial parks and car streets, etc came into being one after another in car markets. People in this industry have been discussing on whether these cars sales modes are actually excellent or not, especially the 4S mode which was once popular in the main western industrialization countries and worshipped in car retail in China a few years ago. But, through the experiments in the past years, people came to find car 4S mode was not the unique and the best appropriate to Chinese situations and each kind of sale modes has its merits. The key problem to be discussed in this article is that which sales mode shoud the car dealer adopt. We try to analyze and compare the advantage and disadvantage of each kind of sale mode in car markets of our country in the past few years, discuss different kinds of car products, aims at different consumption groups. Car dealers should choose the right car sales mode according to different markets environments and their own situations. Meanwhile, by analyzing advantage, disadvantage and pressure in Chengdu North Vehicle Co., Ltd. (hereafter NORVECO for short) the writer serves and the current sales mode in NORVECO, we discuss the choice of the sales mode in NORVECO. This text is divided into five parts: The first part and the second part briefly introduce and review the beginning and development of world's car industry and the development process in China's car industry respectively, and analyze present condition of car industry in China and the difference between the mature foreign car markets and the developing markets in China. The third part analyzes the current car sales mode in China, including the history, practical operation, advantages and disadvantages of all kinds of sales mode. Then evaluates generally all kinds of sales modes and draws the conclusion that each kind of sales mode has its merits and none is better than the others. The fourth part introduces NORVECO, compares different sales records achieved by different sales modes selected at different time, then points out the restriction and countermeasure of current sales mode selected by NORVECO through the SWOT analysis. The fifth part introduces the new trend in the Euro-American car retail markets and some new changes in car retail markets in our country to explain that diversified car sales modes needed by both particular car dealers and car markets in China. This text links real situation closely, grasps the highlight currently and thus has strong pertinence and practice. Marketing competition theory used in analyzing the questions to ensure the perfect combination of theory and practice. The article still to make use of the findings is by people in car industry and media, result of the car profession in car association when using the marketing theoretical, and then put forwardown viewpoint. Arguments on car sales mode exists in this line for a period of time. Which one is better, no conclusion has been drawn. But each kind of sales modes all developed rapidly in the arguments, and which happen to prove the conclusion that the diversified sales modes needed in our market. We believe certainly that car dealers and our car retail trades will benefit from this conclusion.