After the vehicle ownership exceeded 200 million, the market business became the brightest point in the first half of the year

As of June this year, China’s car ownership has reached 205 million vehicles. Such a huge amount of car ownership will undoubtedly boost the potential of the auto market after it is boosted.

Throughout the first half of the year, the automotive aftermarket bid farewell to what was called the "cold winter of capital" last year, and investment and financing activities have become increasingly active. Faced with this trillion-dollar gold mine to be diverted, it can be described as the closure of a new life, divestment and investment, risks and opportunities coexist.

In the survival of the fittest, enterprises return to rationality, invariably force the line, adjust profit models, and improve services.

In the area of ​​automotive aftermarket segmentation, maintenance-related maintenance, auto insurance, and auto finance deemed as “industrial leverage” are boosted by the dual factors of policies and demand, becoming the aftermarket of the automobile market in the first half of this year and even the next few years. The brightest point.

The pace of survival of the fittest in the field of maintenance and repair is accelerating. As the age of vehicles in China grows, the demand for maintenance of vehicles will increasingly flow from the 4S store to the independent after-sales maintenance system, plus a number of policies that have a major impact on the industry in recent years. In succession, it has accelerated the optimization and upgrading of the industry and brought new development opportunities to outstanding independent after-sales stores.

As a whole, in the first half of this year, the field of automobile maintenance and repair was toward chain, brand, and information. The excess production capacity was further reduced, and the survival of the fittest accelerated.

In the first half of this year, the two major influential policies on the industry were introduced one after another, indicating the future direction of development of the industry and market opportunities.

The first is the introduction of the "Automotive Sales Management Measures" (hereinafter referred to as the "Measures") on April 14 to allow the separation of sales and after sales.

Previously, 4S stores had two resources of original spare parts and vehicle maintenance information. However, with the implementation of the Measures and the “Administrative Measures for the Implementation of Auto Maintenance Technical Information Openness,” monopoly in these two areas is being broken, and the post-sale transformation may be preceded by In the sales channel changes come.

Secondly, on May 12, the Ministry of Communications issued the Notice on Launching the Construction of an Electronic Health Records System for Automobile Maintenance, further accelerating the deep integration and innovation and development of the automobile maintenance industry and the Internet, promoting the transformation and upgrading of the automobile maintenance industry, and effectively protecting consumers. Legal rights.

The automotive electronic health records draw on the advanced experience of Europe and the United States and record all the information of the entire life cycle of the vehicle. It is the basic data platform for the future automobile maintenance industry and will be expected to restructure the corporate profit model and industry form.

The once highly sought-after O2O maintenance company experienced an industry reshuffle after the “capital winter” of 2016. The surviving enterprises turned more firmly to offline stores, basically entered a stable development period, and were in terms of profitability. There has been a marked improvement.

However, there are also some star companies that failed to survive this year because of problems with the profit model.

For example, the ST Zhuge world once considered by the industry as "unicorn" finally declared bankruptcy in the form of sell-off; in May, the car ant who claimed to be the first domestic automobile service O2O platform announced the dissolution. On the whole, in the first half of this year, venture capital investment in the field of auto parts and maintenance was more rational, and the degree of concentration and the amount of financing increased.

In addition, in the first half of the year, local environmental protection agencies and industrial and commercial bureaus began to investigate and repair non-compliant maintenance companies, removed inefficient and redundant production capacity from the auto maintenance industry, and promoted the upgrading of the industry's environmental protection level.

In the course of continuous optimization and upgrading of the industry, chaining and informationization have become one of the trends that have attracted attention in the maintenance and maintenance field in the first half of this year.

Although China's automobile industry has gradually grown into a pillar of the national economy, the supporting areas of automobile maintenance still give people a dirty, chaotic, and poor backward impression. The openness and transparency of information and the establishment of industry standards are the basis for the construction of good faith. Can effectively promote the expansion of maintenance companies and standardize operations, improve lean management capabilities.

In addition, many dealer groups, local large-scale maintenance companies, and insurance companies are exploring the establishment of larger-scale, more standardized rapid repair chain systems, and chaining has become the industry's choice.

However, due to the slow progress in the disclosure of models and parts data and maintenance information, it is difficult for data information and management systems to provide decision support and efficiency improvement for maintenance stores without full communication. Therefore, it takes time to realize real chain operations. The need for government departments to urge the implementation of the industry's informatization goals.

It can be predicted that in the second half of this year, China's auto repair industry will accelerate the survival of the fittest. Under the background of “return to rationality” of venture capital, enterprises cannot rely solely on gimmicks and subsidies to develop in the long term. They must combine their own advantages, identify their positioning, and do a good job of customer service.

car insurance

Secondary fee reform aggravates industry competition

In the first half of this year, the area of ​​auto insurance could be described as undercurrents. With the advent of secondary fee reform, industry competition has further intensified, and Internet giants have seized the auto insurance market and added fire.

According to the latest data, in the first quarter, the commercial auto insurance premium of the entire industry was 178.199 billion yuan, a year-on-year increase of 6.11%, and the growth rate was declining; the comprehensive cost rate increased from 99.16% in the same period of the previous year to 99.32%, of which the comprehensive ratio increased from 58.14% to 59.37%, the comprehensive cost rate dropped from 41.02% to 39.95%.

It can be seen that under the background of increasing competition and premium growth in the industry, the overall cost rate has further increased, and the loss ratio has also increased.

After one year of fees and fees nationwide, the China Insurance Regulatory Commission (CRO) believes that the time has come to continue the deepening of the reforms in accordance with the previous arrangements. The second fee reform has been initiated and the independent channel coefficient has been lowered again.

On June 9, the China Insurance Regulatory Commission issued the “Circular on Issues Concerning the Adjustment and Management of Commercial Vehicle Insurance Rate,” which indicated that it would further expand the independent pricing power of insurance companies, cut the lower limit of the floating coefficient of commercial auto insurance rates, and further reduce commercialization through marketization measures. The level of auto insurance rates, which marks the official start of implementation of the second fee reform.

The second-tier fee reform did not directly adjust the voluntary coefficient from “double 85” to “double 75” in a “one size fits all” approach, but continued to implement the “overall design, step-by-step implementation” principles established by the CIRC in 2014. Differences, according to different regions plan four programs:

First, in 26 regions such as Beijing, the lower limit of the floating coefficient of the independent channel coefficient was lowered from 0.85 to 0.75, the autonomous underwriting factor remained unchanged, and the floating lower limit was still 0.85;

The second is that in eight regions such as Tianjin, the lower bounds of the independent channel coefficient and the autonomous underwriting factor were all lowered from 0.85 to 0.75;

Third, in the jurisdiction of the Henan Insurance Regulatory Bureau, the lower limit of the floating coefficient of the independent channel coefficient was lowered from 0.85 to 0.75, and the lower limit of the floating rate of the autonomous insurance factor was lowered from 0.85 to 0.80;

Fourth, in the Shenzhen Insurance Regulatory Authority area, the lower limit of the floating of the independent channel coefficient and the autonomous verification factor was lowered from 0.75 to 0.70.

Under the influence of secondary fee reform, the insurance company’s premium adequacy ratio and loss ratio will be reduced, and poorly-managed insurance companies will face elimination, while those with higher management and management level will be further expanded after the second fee reform. market share.

For 4S stores, the number of accident vehicles paid by insurers will decrease, the proportion of self-paid maintenance will increase, and the business model for the maintenance of sales-for-insurance vehicles will be challenged. For users at their own expense, the price of original parts is not Market competitiveness will lead to the loss of users.

Regardless of whether it is a 4S shop or a repair shop, it is necessary to improve service quality and user experience when working with insurance companies.

For consumers, after the second fee reform, discounts on national auto insurance premiums can be as low as 3.8 percent, and in some regions, even lower.

According to industry estimates, a car owner with good driving habits is insured by a well-run insurance company, and premiums may go down by 20%.

In addition, in response to the widespread problems in the auto insurance market, the CIRC issued in the first half of this year a “Letter to Solicit the Opinions on the Remedy of the Confusion in the Motor Vehicle Insurance Market (Draft for Solicitation of Comments)”. Listed costs, data falsification, fraudulent fees and other long-standing violations of the auto insurance market.

In the context of the second fee reform, the Internet giant also actively deployed the auto insurance industry in an effort to change the existing auto insurance pattern.

In addition, the auto insurance parity platform and start-up companies focused on UBI auto insurance also stepped up their position in the auto insurance industry. “Ease Insurance”, “Best Favorable Insurance”, and “Lambi” were all financed in the first half of this year. VCs paid attention to the auto insurance industry. The degree is still climbing.

According to analysts in the industry, the Internet giants have two resources, consumption data and social data, which are closer to consumers and have more advantages in Internet technology. In the future, Internet technology and big data will certainly bring about greater innovation in the auto insurance market. How to obtain data and really use it needs further exploration.

For car owners, the internet giant's entry into the car insurance industry may mean that it is more convenient and affordable to purchase car insurance services. However, for the entire industry, this also indicates that the “car insurance + internet” campaign has started. The second wave of fee reform coupled with the addition of Internet giants will undoubtedly bring new changes to the auto insurance industry, and the industry competition will become increasingly fierce.

From the policy-oriented perspective, in the second half of this year, all business entities can no longer obtain the market at low prices, but should further explore the difference in auto insurance and human services.

Large-scale insurance companies rely on economies of scale to have a strong profitability. The difficulties in the operation of small and medium-sized insurance companies will intensify, which will lead to a further increase in the concentration of the auto insurance industry.

auto finance

Value restructuring extends to the entire life cycle of the car

According to incomplete statistics, as of June 30, there were a total of 13 auto finance platforms in China that obtained risk financing with total financing amounting to 12.8 billion yuan, of which 9 were financed at the level of 100 million yuan.

In the first half of this year, in the midst of an apparent decline in the growth rate of automobile production and sales, auto finance was a bustling scene. Not only was the capital popular and investment events frequented, it also attracted many post-market companies to launch financial products based on their own businesses. .

Obviously, auto finance has become a profit growth point that can't be ignored in the aftermarket because of the continuing rising popularity.

According to Yang Xu, director of consulting for PricewaterhouseCoopers' automotive finance business, the development of the automotive financial industry in the first half of the year can be summed up with the word "rich".

On the one hand, it is the richness of participants. In addition to traditional banks, auto finance companies, and financial leasing companies, more and more financial and financial institutions are also joining this camp.

On the other hand, with the abundance of service providers, as the financial market for passenger vehicles gradually moves toward the Red Sea, the financial penetration rate of new vehicles that have continued to grow rapidly in recent years is close to the peak in the short term, and the growth performance of second-hand car finance in the first half of the year deserves more attention.

At the same time, with the low-threshold and flexible products to win the financial leasing business, following the sudden emergence last year, the first half of this year achieved a gorgeous transition from "leaseback" to "direct rent."

Represented by the explosive growth in car search business volume, major financial institutions competed to launch similar products, which not only achieved product innovation, but also opened up a new "car retail" channel in the depressed distribution market.

Regardless of the commercial vehicle finance to be opened or the direct rental business that springs up, it can be seen that the connotation of auto finance is increasingly enriched by the invisible hands of the market.

In the eyes of the industry, the future of automotive finance is no longer a simple competition of basic businesses such as inventory financing and consumer credit. Focusing on the upstream and downstream of the automobile industry chain, the auto finance landscape will show a more diversified development pattern.

As China's auto market continues to divide and the overall industrial chain undergoes the impact of the new Internet business model, the business form of auto finance has gradually undergone many changes. The former auto finance business entities that followed the auto companies started to integrate data, market sinks, and products. Diverse directions.

In addition to the rich connotation, the expansion of automotive financial extension is also subverting people's inherent cognition.

On June 29, Yixin Group released an eco-friendly strategy to launch a personal car service brand “Taodao” for the C-side, providing consumers with a one-stop shopping experience covering selection, buying, selling, and vehicle value-added services. It means that Yixin, which is cut from the automobile finance, is building a complete eco-chain of automotive e-commerce.

According to Mu Hailong, the market leader of a commercial bank's auto finance department, service around the customer's entire value chain is the biggest change in the auto finance field in the first half of the year and will become a trend. With the promulgation of the "Automotive Sales Management Measures", the threshold for automobile dealership services has been significantly reduced, which makes it possible for auto financial service providers to provide customers with related services including car buying and aftermarket.

In particular, direct-risk direct-rents will further test the service capabilities of financial entities throughout their life cycle because the ownership of direct-rent vehicles is a leasing company. In this case, financial services will become 'financial services + asset management'. If the entire service is not in place, it will lead to remnants. Value cannot be guaranteed, used vehicles will be difficult to handle.

The development of direct-rent business will greatly enhance the company's profitability, and at the same time provide guarantees for the development of operating leases and used-car finance.

Automotive Finance Keywords

Ecological

In a mature industry, the formation of ecology is inevitable, but breaking the old pattern and establishing a new ecology are not easy, but the auto finance industry has finally taken this crucial step.

In the first half of the year, the “Automotive Sales Management Measures” loosened the sales channels for automobiles and created a great opportunity for financial entities to provide more services.

The financial participants represented by Yixin, which has launched the “Amoy Car” platform, are trying to use finance as a cut-out to deeply engage in the automotive life cycle service industry chain.

Fusion

BAIC Group's participation in Jiujiang Bank signifies that car companies are gradually changing the traditional way of cooperation with banks. Instead, they integrate business and financial resources to tie in more deeply with banks, and the close relationship between the two makes them both in the market and funds. At the same time, they are all highly competitive; in addition, the Shenzhen Finance Co., Ltd., which started as a consumer finance company, has entered the auto finance industry, and the auto financing of consumer financial finance, which has become very popular in auto finance, also indicates that consumer finance and auto finance are being To converge.

Financing

From last year's "asset shortage" to this year's "fund shortage", the data shows that the financing costs of auto financing entities have risen this year.

On May 23rd, Chery Huiyin submitted the IPO application for manuscript, which has been accepted by the China Securities Regulatory Commission. If the A-share listing plan goes ahead, Chery Huiyin will become the first domestic auto finance company to access the capital market.

This means that in the past, financial institutions that could only rely on interbank lending and asset securitization financing will be further broadened in the future, which will also bring more imagination to the development of the industry.

return

With the advent of “bombing a car” and “going away,” direct-rent products quickly became popular in the first half of the year. The much-anticipated auto financing lease will change the past regulatory departments' criticism of their business model, returning from leaseback to a more direct-to-rent model that is more logical and has clearer processes.