China is selling more cars than ever. There are those who believe that, in reality, they are using their concessionaires as warehouses
Is the swollen electric car market? This is what some experts begin to wonder when the latest information that comes from the Asian country is attended. Vehicle automation seem to be triggered and now it is the concessionaires themselves who give the alarm. Excess offer and price wars are putting the strings to the concessionaires. An alarm. The Chamber of Commerce of China’s car dealerships has expressed concern about the massive arrival of vehicles to their network and require manufacturers to stop sending them vehicles because they are having problems selling them. The information brings it Reuters Those who echo the statement of this association that has given the alarm before a practice, that of automatricular vehicles, which seems to be overflowing the distributors. They run the risk of ending them. The fear of this association is that the current moment of the Chinese car takes to its own dealers ahead. In their statement they ask manufacturers to point to reasonable sales (and productive) figures and stop using their spaces for storing cars. They assure that accumulating both stock with automatrications is further favoring a price war that drown their margins or forces them to sell at losses and, therefore, is putting a multitude of businesses at risk in this part of the chain. What is happening? The voices that suggest that the Chinese market is being filled with automatriculated vehicles that are then Malvender are not new. Wei Jianjun, president of Great Wall Motor, assured in an interview with Sina Finance that there were between 3,000 and 4,000 dealers accumulating an excessive stock of vehicles. Jianjun came to qualify the “Evergrande del Autos” Chinese real estate bubble. In fact, in Reuters They assured weeks ago that the government itself called a meeting to car manufacturers to study the situation. Among the greats indicated were Byd and Dongfeng Motors. A tactic “to the European”. This way of acting from automatricular new vehicles, loading the network and then selling them as semi -new or Km 0 cars is not be baffled in Europe. In fact, it is a usual tactic of manufacturers to ensure a minimum number of sales of their vehicles, forcing dealers to buy a minimum number of cars that then have to sell on their own. These tactics are usually applied when The year endsmakeup the numbers a little, when a new regulation arrives and prevents selling cars by emission limits or lack of security equipment (as the recent European obligations with the ADAS). The face b. What worries Chinese concessionaires is that all these units that are entering the semi -new market do not manage to sell or need enormous discounts to give them exit. It is the same that happened in the United States where a concessionaire practically gave the Fiat 500 electric Because he had been forced to buy units that there was no way to get at a reasonable price in the market. In China, fear is founded because price wars are even more aggressive, with a very competitive market, with many brands that are pressing to lower prices. To this we must add a rhythm of product releases and their development that They quickly leave obsolete those already in the networkhindering its sale even more. To this is added that China lives a problem of internal consumption. By culture, the Chinese client is reluctant to spend a lot of money. Despite promoting a higher expensethe Chinese average client It is still reluctant to the big purchases OA a rapid rhythm of product replacement, which is making it difficult to give out these products. Photo | Xataka In Xataka | Byd set out to win the electric car race. And then a TSMC factory went on sale
