China’s dealers are warning of excess supply in the slowing Chinese market and conditions that are forcing excessive discounting.
Reuters reported remarks made on the subject by a senior official of the Chinese Automobile Dealers Association (CADA). “The [market] reality is: supply exceeds demand,” said Luo Lei, deputy secretary general of CADA, according to the report. He also reportedly said that dealers are now beginning to speak out because the situation is “getting so unbearable”.
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Analysts say that automakers have been aggressively supplying the Chinese car market in recent years, but that market slack is now becoming a problem as the Chinese economy slows. Some manufacturers are now reducing supply in China in response.
However, CADA reportedly complained to the Chinese government that automakers have wielded excessive power and pushed cars onto dealers who are now struggling to make money.
