New car sales are an important part of consumer spending, and can well reflect consumers' confidence in the economic outlook. Usually, automobile sales are the first-hand information about the strength of a country's economic cycle, which is earlier than the release of other personal consumption data.
With the slowdown of economic development and the continuous downturn of car market demand, the development of 4S stores bid farewell to the period of rapid growth in 2012. In 2012, China added more than 2000 4S stores, with a total of about 20000. Due to the difficult improvement of market sales, the gradual increase of inventory pressure of dealers, as well as the gradual slowdown of purchase restriction and traffic restriction in first tier cities such as Beijing and Guangzhou, the profitability of many dealer enterprises decreased in 2012. At the same time, the decline of gross profit margin reflects that the new car sales business has gradually entered the era of low profit.
