Acura dealership network in China shrinks around 20% as sales continue to decline

Gasgoo.com (Shanghai December 21) - With competition in the Chinese automobile market on the rise, second-tier import luxury vehicle manufacturers have had an increasingly hard time maintaining strong sales. According to a report appearing in Shanghai Securities News today, nearly 20 percent of Acura dealerships in China have been forced to close tier doors due to increasing deficits. Even more dealerships are predicted to retire in the future.

According to statistics, Acura's Chinese network fell from 39 dealerships in 2011 to 32 dealerships this year. In the Zhejiang region alone, the number of Acura dealerships has fallen a full 40 percent. The decline in dealerships is attributed to critically low sales levels. Generally speaking, a dealership needs to sell 50 vehicles monthly in order to break even. Yearly sales for Acura dealerships, meanwhile, are only around 100 vehicles, with monthly sales usually less than ten vehicles.

Acura, Honda's luxury vehicle division, has been active in the Chinese market for six years now. Despite this, brand recognition for the Acura name is relatively low. This factor, coupled with its relatively low number of vehicles, high prices and fierce competition from rival manufacturers, Acura's performance has lagged significantly far behind fellow Japanese luxury brands Lexus and Infiniti.