Present Situation and Development of Service Trade for Advanced Passenger Car in Xi’an

Development of center-western China was ranked as a 
very important position by the Chinese 
government. As one of the most important industries, development of automobile will promote auto-maintain and 
repair trade in China. Xi’an, a center city in north 
western, carries out frequently commerce with other areas, progresses 
rapidly transportation and travel, and increases gradually quantity of various 
import and homemade vehicles. In Xi’an city, auto-workshops mainly repair small 
cars at present. There are no special dealers for passenger car. Therefore in Xi’an local, creating some standard 
dealers that can fix advanced passenger cars and selling auto-parts will have a 
wide prospect.


Introduction
Many factories have a long experience with repairing various vehicles in Xi'an.
They also have some professional contingent. Named passenger car maintain and repair enterprises were developed in a planned way beginning at end of "ninth five" or at "tenth five" in Xi'an. Before that time, administration of the auto-maintain and repair enterprises was not concentration. Supply source of the vehicles was dispersion. In recent two years, quantities and transport of the passenger cars have been grown with 15.8 percent and 17.1 percent, respectively, in the light of statistical data [1] [2]. Their growth rate exceeds greatly the rate of the auto-maintain and repair enterprises increase simultaneously. Most businesses were taken by privately owned workshops. There are 50,000 -100,000 vehicles to repair every year, where almost 40 percents are large-sized or middle-sized passenger cars and small cars. About 2.5 million yuan RMB profits will  [4]. New service center, consequently, will be an enterprise that invests limited funds and repays highly and rapidly. There will be greatly economical and social benefits on it.

Operating Tactics
1) There exist many national preferential policies in the tenth five years plan to north-western China. Those can be made full use by us. We must seek a new way that is both limited investment and much repay, and contribute to Xi'an economy.
2) There exist many qualified scientists and technicians in Xi'an area, who can be invited to the center. By doing this, we will satisfy the ability of research, test and examination and higher technological level for the auto refitting and repairing.
3) Seizing the opportunity is the meaning of possessing market. To forecast market, open up and develop market, satisfy market, service markets are essential aim of the enterprises. The purpose of the operating organization, quality management as well as maintain and repair is just for the market and customers. Specially in the field of refitting vehicles and repairing various small cars, more wide and careful business and too much work have to do. Thus we must change essentially our sense of operation and administration so that adopt market necessary that is varying and growing continually. Therefore, New center should be setting up a special service department and a fast repairing system. We must treat market as a guide and carry out an idea that not only for the repair of cars, but also for the sale of the various auto parts.

Business Scope
The new center can refit and repair intermediate and advanced passenger cars, repair, maintain and performance examine various type cars, sell or whole sell parts, engine oil, paint and maintenance products of the various type car.

Business Scale
It will be not less than 3 million yuan RMB If we refit and repair about 1000 large-sized or middle-sized passenger cars every year, where heavy repair 100 cars, middle repair 300 cars and light repair 600 cars, refit or repair about 1300 other type cars every year, where heavy repair 200 cars, middle repair 300 cars and light repair 800 cars, and wholesale or sale of parts, engine oil, paint and maintenance products of the cars.

Investment Budget
This project will be invested estimably 4.85 million yuan RMB.

Source of the Funds
1) The funds for the training and transforming will be raised by new center.
2) About 50 percent for the equipment will be gotten from bank loan.
3) The circulating funds will be fully gotten from bank loan.

Choice of the Repair and Test Equipment
To repair cars in the omnibearing and diversifying way, enhance technique and quality level, satisfy market necessaries, new center must purchase a complete set of repair and test equipment.

Water
New center will need 6 thousand tons of water per month from Xi'an City Waterworks.

Power
New center will need 6 lines power and 560 KVA capacities of the power distribution transformer from Xi'an City Power Department.

Gas
Oxygen, acetylene and carbon-dioxide can be obtained in Xi'an local.
where amount of 40 percent is material cost, amount of 15 percent is personnel salary, and amount of 20 percent is for tax and other use.
If sales department can whole sell or sell auto parts, engine oil, paint and maintenance products about 3.5 million yuan RMB every year, the profit for this item will be 3500 × 15% = 525 thousand yuan RMB according to 15% profit every year. In the light of above reasons, we must seize the opportunity and find the support of the relative department of government. We have to do something to not only supply the market, but also get considerable economic benefits. We must achieve success and win honor.

Conclusion
The conditions of building a service center for advanced passenger car have been satisfied. New service center will be an enterprise that invests limited funds and repays highly and rapidly and will contribute to Xi'an economy.