Table of contents:
- Indicators that have gotten worse
- Indicators that remained at last year's level
- Indicators that have become better
Video: How The Fall In Car Sales In Affected Dealer Revenues
2023 Author: Natalie MacDonald | [email protected]. Last modified: 2023-11-26 13:59
In the first nine months of 2019, the Russian new passenger car market sank 2%, which was directly reflected in the key performance indicators of dealerships. For example, the storage time for cars and spare parts in warehouses has noticeably increased, and the costs of sales departments have increased. Nevertheless, dealers were able to maintain profit from the sale of spare parts and increase the productivity of the service.
The data is collected on the basis of the results of the work of dealer networks of ten car brands located in 11 economic regions. Three brands are premium, seven are mass market. For comparison, data for January-September 2018 were used.
Indicators that have gotten worse
Number of cars sold per seller dropped on average to 93 units - a year ago this figure was equal to 100 cars. A decrease was recorded in seven regions, the strongest was in the North Caucasus, minus 17 cars on average. In three regions, the indicator increased, the strongest - in the North, plus 10 cars. Dealers of the West Siberian region have kept last year's figures.
- Spare parts warehouse turnover more than 2 months on average (plus 6 days). In eight regions, this indicator has worsened. Anti-record - in the East Siberian and Volgo-Vyatka regions: plus 23 days. Dealers in the North-West managed to keep the result at the last year's level - 76 days. In the West Siberian and Northern regions, spare parts began to "leave" the warehouse faster by 10 days.
- Service coverage decreased by 4.5 points - to 80.2%. The fall is observed in seven regions. The strongest is in the Central region, minus 10.1%. Another 4 regions remained in positive territory. The best growth is in the East Siberian: 6.7%.
Parts department costs in relation to gross profit increased slightly: 19.3% in 2019 against 19.2% in 2018. In four regions out of 11, expenses increased: dealers of the West Siberian and Central regions added 1.1% each. The rest of the car dealerships managed to save money. It turned out best of all in the Central Black Earth Region: minus 2.3%.
- Sales department expenses in relation to gross profit are 53.6% - 12.3% more than a year ago. Growth was recorded in ten regions. The strongest jump is in the North Caucasus region: plus 16.5%. Only the dealers of the East Siberian region have this indicator improved: minus 1.8%.
- Service department expenses in relation to gross profit on average rose to 51.7% (plus 2.1 points). Of the six regions in which an increase in expenditures was recorded, dealers of the West Siberian District suffered the most: plus 5.2%. The dealers of the East Siberian region learned to save better than others: minus 5%.
Average storage time for new vehicles in stock increased on average from 35 to 54 days, and in all regions. The longest time cars stay in the warehouses of the Volga-Vyatka region salons - 69 days (plus 37 days - the strongest growth). The Northern region added less than others - plus 13 days (44 days).
Indicators that remained at last year's level
Parts Department Gross Profit remained at the last year's level: 24.8%. Positive dynamics was observed only in two regions: Volgo-Vyatka (plus 0.9%) and Central Chernozem (plus 1.4%). The worst dynamics was shown by dealers in the West Siberian region: minus 1.5%.
- Average retail cost of a standard hour for 1 work order in Russia remained the same - 3200 rubles. In the North Caucasus and Central Black Earth regions, it rose by 400 rubles - this is the largest increase. The maximum price reduction was recorded in the Volga-Vyatka region: minus 600 rubles. Dealers of the Far Eastern and Ural regions kept their last year prices: 2700 and 3200 rubles, respectively.
Indicators that have become better
Service gross profit increased to 72.5% (plus 2.6 points). Dealers in five regions showed positive dynamics. The best result is in the North Caucasus: plus 1.7%. The gross profit of the service decreased most noticeably in the Volgo-Vyatka and North-West regions: minus 1 percent.
- Service productivity (indicator of the use of working time by employees) reached 92.6% (plus 2.2%). The parameter increased among dealers in all regions. The Far East region has the best dynamics: 19.5%. Dealers in the Northern region added less than others: 4.1%.
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