Gasgoo.com (Shanghai August 1) - The pressure on independent automobile manufacturers' inventories is increasing as sales at Chinese dealers continue to decrease, China Business News reported today.
The contrast is stark when comparing inventories of independent manufacturers with those of joint ventures. The average turnaround for JV inventories in Guangdong's capital of Guangzhou is two months, when compared with over three months for independent makers. "Whatever happens, we will not be restocking [vehicles] next month," one anonymous Guangzhou dealer was quoted as saying.
Regarding the situation, one dealership selling Japanese cars put the blame on the fact that, since the Lunar New Year in February, the automobile market in China has not fully flourished. Monthly sales in the first half of 2010 could reach as high as 1.2 million vehicles, while selling more than 800,000 a month would be considered exceptional for this year. Meanwhile manufacturers have also been taking on more responsibilities than last year, with less energy to devote to final sales. The end result is that dealers have been increasing the number of promotions last month to stimulate sales.
