18 August 2019

Car dealers struggle as price war rages, China Daily says

Chinese auto dealers saw their average profit margin shrink to less than 2 percent of revenues in the first half of 2013, well below the industry benchmark of 3 percent, as inventories rose amid an intense price war, China Daily said on Monday, citing a report by British consulting firm Deloitte. Margins have been hurt by the dealers’ heavy reliance on new vehicle sales, a challenge compounded by rising operational, labor and financing costs, according to the Deloitte report, which was based on surveys and in-depth interviews with dealers. Parts and after-sales services only accounted for a small percentage of overall revenue, the report said.

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