China has been immersed for years in a brutal war at the prices that in the end will have the opposite effect for the desired: sinking its electric car market. The car manufacturers, forced to grow constantly, have triggered a race that is now generating an excess of cars.
There are so many cars that brands don’t know what to do with them, so they decided to use retailers as deposits. In response, they said it is enough.
The conditions are increasingly “serious”
China has discovered its records, a practice that some retailers and brands use at the end of the quarter or year to achieve the objectives. Once recorded, these cars are represented as sold, but in reality it thickens the inventory of the seeds -deception of the Km 0 dealers so called. Nobody has purchased them and accumulate in stores.
The local press reported that at least 20 byd stores had to close or “deserts”, only in the province of Shandong.
The situation has reached a measure in such a way that Chinese car dealers asked the car manufacturers to stop selling so many vehicles from retailers, since the intense prices of prices are pressing the cash flow, reducing profitability and forcing the closure of some stores, According to Reuters.
In turn, the Chinese automotive chamber of commerce played the alarm in the middle of the escalation of the price war, stating that the conditions are “even more serious” than before.
They believe that producers should …
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Source: Terra
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