China auto price war slams dealers with $20bn in losses: report

Industry group recommends calls for financial support, consumer incentives

Cars at a dealership in Shanghai. Dealers have faced pressure from automakers to stock up on inventory despite weak consumer spending. (Photo by Tomoko Wakabayashi)

SHUNSUKE TABETA, Nikkei staff writer

September 25, 2024 00:21 JST

BEIJING -- Auto dealerships in China have sustained 138 billion yuan ($19.6 billion) in combined losses this year through August due to an escalating price war, according to industry data.

The China Automobile Dealers Association (CADA), which includes independent and automaker-affiliated dealerships, submitted an emergency report to the government about the situation, the group said Monday.