《Auto Market》.pdf

January 26th, 2012 Sector Report Car Dealership Sector Going from Strength to Strength in the No.1 Auto Market BUY Investment Highlights ：  4S car shops have become the main distribution channel in China. 4S car shops in China are authorised car dealerships, with 4S representing sales, spare parts, service and survey (i.e. Machinery Transportation Equipment customer feedbacks). They are favo ured by customers for their Analyst ：John Luo comprehensive service (pre-sales and after-sales), and 4S car SFC CE No.: AVT518 shops have become the main distribution channel. 00852-2899 8300  Sales of new cars are the major contributor of revenue. Yet john.lu@.hk after-sales service is becoming more important. In China, 90% of the revenue of a typical car shop comes from the sales of new cars. As such, investors need to focus on the growth rate of car sales. As the number of car ownership grows