Auto China 2026 promises to be milestone event
Auto China 2026 marks another milestone in the evolution of an event that has tracked China’s rise from emerging market to global automotive powerhouse.
- Industry News
- 16 April 2026
At some stage in the next twelve months, you are going to be faced with drawing up budgets for the next financial year. Simply taking last year’s performance and adding or subtracting from those numbers for your budget is really easy but mostly ineffective.
I detail below some critical inputs that should be considered when budgeting for your new vehicle Gross Profit (GP):
Once you have the volumes and model mix for your area, you need to calculate/estimate the selling price of your models as well as the GP% you expect per model.
What are you going to charge for PDI? This needs to be considered as part of your cost of sale.
With the above info, you will be able to calculate the dealership’s new vehicle volumes, average selling price and GP for new vehicles (first gross).
I like to break down GP into first gross, second gross and F&I gross:
Second gross consists of all additional products that are not finance or insurance related. This includes accessory sales, “3 in 1” sales, window tint, documentation fees, admin fees and any other products that you sell that are not finance and insurance related.
You need to consider model mix when determining your second GP as the potential for accessories on an LDV is way higher than it is for an entry-level car.
F&I GP is you finance commission, warranty sales and GP, maintenance/service plan sales and GP.
Lastly, you may want to include a provision for after-sales, advertising or any other type of provision that you deem necessary.
In order to pinpoint performance, I would recommend a separate line item for each of the components that make up first GP, second GP and F&I GP. It is then much easier to measure areas of performance and non-performance.
Auto China 2026 marks another milestone in the evolution of an event that has tracked China’s rise from emerging market to global automotive powerhouse.
Hyundai Automotive South Africa is expanding its Hyundai Grand i10 range with the introduction of a new Executive derivative, as competition intensifies in the price-sensitive entry-level vehicle market.
Geely has launched the new Geely Auto E2 in South Africa, adding a compact all electric hatchback to its growing local line up.
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Have you ever noticed that anybody driving slower than you is an idiot, and anyone going faster than you is a maniac?
George Carlin
To be named the overall Hyundai Dealer of the Year is not something that simply happens. It is the result of hard work, dedication, looking after your staff and customers, and maintaining a clear focus on your goal. That goal is to be the best.
GWM South Africa hosted its annual Dealer Conference and Dealer of the Year Awards, bringing together its national dealer network of over 100 dealerships to review performance, align on strategic priorities, and recognise outstanding achievement across the business.
LDV South Africa recently hosted its dealer conference, with representation from dealerships across the country. Among those present was Joy Zhu, Africa Regional Director for SAIC Motor International, reinforcing the brand’s global backing and commitment to growth in South Africa.