The automobile market has pressed the pause button for a long time due to the epidemic.

In the anxious wait, there are many car companies announced the resumption of work. China Association of Automobile Manufacturers (CAAM) research data show that as of February 18, the resumption rate of the domestic auto industry has exceeded 75%. From this point of view, the automobile industry seems to have almost got rid of the impact of the epidemic, the production rhythm gradually back on track, but the actual situation is not so. A fact that has been overlooked is that the resumption of work by car companies is not the same as the resumption of production, not to mention the resumption of the market.

It is understood that the current resumption of work of the car companies involved in the post is concentrated in sales, public relations and administrative functions and other departments. Factory resumption is to consider more, must ensure the safety of a large number of staff, so most of the small batch production mode or single-shift production mode, far from recovering to the level before the epidemic, talk about the resumption of the market is still too early.

In addition to the car company's own reasons for the limited resumption of work, suppliers and distributors of the resumption of work also directly affect the car companies resume work and market resumption.

Insufficient supply of parts and components, how can the car off the line?

The core feature of automobile production is a long industrial chain, and the articulation of the supply chain is extremely important. It is important to know that a car consists of about 30,000 non-disassembled parts, and a poor supply of one part will affect the entire production process, while the current supply of parts for car companies is generally in short supply.

Chen Shihua, deputy secretary-general of the China Association of Automobile Manufacturers (CAAM), said that many car companies are still unable to resume production smoothly and efficiently due to the supply problem of parts, which also affects the output of cars. The epidemic has a very big impact on the production and operation rhythm and influence of enterprises. OEMs are national supporting, there are a number of levels of suppliers such as Tier 1, Tier 2, etc., as long as there is a problem in a link, it will affect the rhythm of production of the whole car, and now the supply of parts and components is a very big problem.

Recently, the Great Wall Motor said, its Baoding, Xushui, Tianjin, Chongqing, four major vehicle production bases have resumed production, production capacity has been steadily climbing, Pinghu, Taizhou, Rizhao, and other plant construction projects have also been started. At the same time, under the coordination and support of government departments around the world, the supply of parts and components, logistics and transportation, as well as the return of employees and other thorny issues have been properly resolved.

It is understood that many parts suppliers of Great Wall are their own companies. Among them, Beehive Echos has begun preparations for the resumption of work on February 10, but it will have to wait until the end of the first quarter to realize the delivery of small quantities, and can only rely on the inventory to maintain the current. From this, even the Great Wall, a company with a relatively solid supply chain, is still not optimistic, and the situation of other companies can be imagined.

Data show that China's auto parts enterprises above the scale of more than 13,000, and in the heart of the epidemic in Hubei, there are more than 1,300 parts enterprises, accounting for about one-tenth. Obviously, such a share allows Hubei to play an important role in the automotive supply chain. Those companies won't be able to return to work until at least March 11, according to the latest rules for resuming work in Hubei province.

Worse still, relative to the car companies, auto parts companies have a weaker comprehensive anti-risk ability, some smaller companies even "life", if there is really a large number of suppliers to close down the phenomenon, will certainly have a great impact on the car companies resume production.

As the saying goes, "a clever woman can't cook without rice", and the supply of parts is insufficient, even if the rate of resumption of work by car companies reaches the standard, it is also impossible to realize the resumption of production. However, as of now, car companies have no other way to make up for the situation, can only wait for the impact of the epidemic weakened, parts and components enterprises to resume normal production.

No one to see the car, talk about the resumption of the market?

The ability of upstream suppliers to recover is not yet known, and the situation of downstream dealers is also not optimistic. According to the China Distribution Association announced the Chinese dealers after the holiday resumption of work data show that, as of February 25, the research of 4950 dealers of the comprehensive power to resume power is only 23.28%. Among them, the staff resumption rate of 48.9%, that is, only half of the dealers open store; sales efficiency is only 15.3%, which means that the car sales situation is even more dismal, the consumer's willingness to buy is very low.

Given the freezing market, it's a good thing that car companies can't resume production, otherwise a steady stream of new cars coming off the production line would have to be parked in corporate parking lots, and soon the companies would be forced to cut back on production because there's no place to park.

Reiterating the idea of pressurizing dealers is impossible, the terminal is now in a precarious situation, the larger dealers may still be able to carry on, the smaller ones may collapse at any time. Most of the current OEMs are trying to help dealers reduce pressure as much as possible. For example, adjust the evaluation criteria, help coordinate the processing of financing needs, guidance, assistance in their online marketing, and incentives and other measures, hand in hand **** through the difficult times.

Currently, China's automobile production capacity is seriously overcapacity, dealers high inventory. China Automobile Circulation Association data show that in January the comprehensive inventory coefficient of automobile dealers was 1.50, up 7.1% year-on-year and 12.8% year-on-year. Although it did not break the cordon, but by the impact of the epidemic, the enterprise postponed the start, February dealer sales pressure must be very big, inventory coefficient will also climb sharply.

So, in the current special period, the automotive industry or the resumption of the market in the first place, otherwise the pressure of the entire industrial chain will eventually be concentrated in the dealers head, resulting in the collapse of the terminal, which is the more fatal blow to the car companies.

Water drop view:

Post epidemic period, the biggest difficulty in front of the automotive industry is to restore the market as soon as possible, only the market restored, the automotive industry this big car is really running.

Currently, the recovery of the automobile market, obviously still far away. The car companies with thicker family backgrounds should bear more pressure and responsibility to help upstream and downstream enterprises to tide over the difficulties together, so that it is possible to survive the freezing period and wait for the day of warming up.

Wen/Li Ping

This article comes from the authors of Automotive Home, and does not represent the views of Automotive Home.