Хураангуй:
The research title is “Certain Improvement Measures in Financial Planning of Passenger Vehicle Dealer Companies”.
The purpose of this study is to find out challenging issues in financial planning in dealer companies in-order to develop improvement measures for financial planning while there is trend of economic slowdown in upcoming years.
Automotives are always been a key product in import part since we are not producing it in our own country and key segment in transportation sector as well. However, automotive industry itself is highly dependent on macro and micro economy, thus to plan in rapidly changing and fluctuating environment is becoming big challenge in dealer companies.
There are 17 offcial dealer companies are operating in the market, in a range of 1 to 20 years of experience that gone through from start of market economy to a developing economy as of now.
In Mongolian market, within the car segment, passenger car is consisting from 67% and around 7% in total cars are new cars that produced in 1 to 3 years. Thus to improve the new car’s sale in the market and analyze the future trend, the study was designed with the following objectives.
1. To asses the status of automotive market and dealer companies in Mongolia in contrast with global market.
2. To asses the key components of financial planning such as sales forecast, scenario analysis, proforma statements and financial planning process and suggest improvments with solution.
The primary and secondary data of financial statements, sales of the new cars and their input values are obtained from related authorities and they were informed that the data collection is purely for the research purposes. All data was obtained for the year from 2012 to 2015.
As a result, the new car sales are projected to decrase in upcoming years and under this forecast how to plan accurate and optimal way would be key challenges for dealer companies and researcher pointed out improvement needed point and suggested improvement solutions accordingly.
