Cooperate with State Grid and BAIC Motor ,China Grand Auto, a Leading Dealer, Gets Favored.
Release time：2020-06-05 Reading volume：1078 source：guanghui
On June 1, in the exchange activity by BAIC Motor and China Grand Auto, called “Cooperation of Energy and Efforts for Brilliance” was held in Bao Xin Building, where the headquarter of China Grand Auto, Shanghai is located, as well as the cooperation signing ceremony of China Grand Auto and BAIC Motor Accounting. BAIC Motor Accounting and China Grand Auto Group Corporation reached the cooperation intention in terms of auto-finance business which will start from the financing business of inventory cars and credit consumption. In the future, BAIC Motor Accounting will serve China Grand Auto with quality and diversified financial products and services, so as to support the comprehensive development of BAIC Motor 4S stores under China Grand Auto.
This is the second strategic cooperation between China Grand Auto and large state-owned enterprises during the half year. In the end of 2019, State Grid-China Grand Auto (Shanghai) Electric Vehicle Service Co. LTD (hereinafter referred to as State Grid-China Grand Auto) was established in Shanghai as a joint venture invested by State Grid and China Grand Auto, and both of the investors tends to play their own advantages in capital, brand, credit, channel, technology and management in an attempt to explore the service market of new-energy vehicle charging and changing services and other new-energy vehicles.
China Grand Auto has been playing a pivotal role in this industry and market, which is shown in the strategic cooperation agreements with State Grid and BAIC Motor. China Grand Auto, as the largest auto dealer group in China, has 841 stores in China as of December 31, 2019, covering 28 provinces, municipalities directly under the Central Government and autonomous regions, and it has been the agents of more than 50 brands. Since its formal establishment in 2006, China Grand Auto has seized opportunities to achieve steady, rapid development and even leapfrog. With new car sales as main business, China Grand Auto has created one-stop comprehensive services covering the whole life cycle of automobiles, including after-sales maintenance, financial services, second-hand cars and insurance agents. On the basis of the original scale advantages, China Grand Auto has been actively exploring more innovation by carrying out comprehensively advances of new retail model, continuously upgrading high level of service, and continuously improving its operation quality.
The recent two year has seen consecutive sales decline in China's passenger vehicles market. In 2019, 21.444 million passenger vehicles were sold, an year-on-year decrease of 9.6%. China Grand Auto sold 897,000 new vehicles in 2019, an year-on-year growth of 1.7%, while most of its peers were declining in sales. China Grand Auto made revenue of RMB 146.74 billion yuan, an year-on-year growth of 2.9%; Its gross profit of new vehicles reached RMB 5.61 billion yuan, an year-on-year growth of 1.9%.
China Grand Auto is improving its profit structure. In 2019, it repaired 8234,000 vehicles, with a year-on-year growth of 2.5%. Maintenance revenue reached RMB15.58 billion yuan, an year-on-year growth of 2.3%. The penetration rate of finance for vehicles reached 68%, up 5.7% year on year. 328,000 second-hand vehicles were sold, an year-on-year growth of 8.5%. At the same time, the Company has developed its non-auto insurance business rapidly, with the first-time insurance rate reaching 76.6% and the renewal insurance rate reaching 69.5%.
On May 28, 2020, China Auto Dealers Conference held online, revealing the Official Top 100 List of China's Auto Dealers in which China Grand Auto ranks the top with annual operating revenue of RMB 170.456 billion yuan, total annual sales (including second-hand vehicles) of 1,225,060 vehicles. That is also the 9th No.1 of China Grand Auto in the Official Top 100 List of China's Auto Dealers. China Grand Auto is leading the industry with unshakable strength. That is because it is unceasingly highlighting its strength and adjusting its strategies as the market changes. So it also creates infinite possibilities for its future development in various businesses.