China's new top-dog dealership group is China Grand Automotive, which passed Pang Da Automobile last year to become the largest auto retailer in terms of revenue. So how does China's No. 1 compare with America's biggest dealership group, AutoNation?
China Grand sold more vehicles last year, but AutoNation generated more revenue.
Privately held China Grand, which has 400 franchised dealerships selling 40 brands, doesn't disclose much about itself. But the China Automobile Dealers Association says the company sold 412,000 new and used vehicles in 2011. The split wasn't given, but it's safe to say the vast majority were new vehicles. Revenues totaled 64.1 billion yuan, or about $10.1 billion.
AutoNation, which has about 215 stores, sold 224,034 new vehicles and 171,094 used vehicles last year, about 17,000 shy of China Grand. But the company generated $13.8 billion in revenue.
What gives AutoNation the edge in revenue? According to the China dealers association, almost 90 percent of earnings for China's largest dealerships comes from new-car sales, as opposed to used cars, F&I or service. With U.S. dealership groups such as AutoNation, those other parts of the business contribute plenty.