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44% of Chinese Auto Dealers Posted First Half Losses: Report

By Liu Yukun and Tang Ziyi / Sep 26, 2019 04:01 PM / Business & Tech

Photo: VCG

Photo: VCG

Slowing demand for cars is putting pressure on China’s auto dealerships, nearly half of which posted losses in the first six months of this year, according to a new industry report.

The study by Shanghai-based online auto services platform Lechebang, which surveyed 2,493 dealerships in 320 cities and covered dozens of car brands, found that 44% lost money during the period from January to June. Only 29% turned a profit, while 27% said they broke even.

The downturn has left many dealers lacking confidence in their future business prospects, said Lin Jinwen, the founder of Lechebang.

China’s overall auto sales dropped 9.9% year-on-year to 1.59 million units in August, the 14th consecutive month of decline in the world’s largest car market, according to data from the China Association of Automobile Manufacturers.

Read the full story on Caixin Global later today.

Contact reporter Tang Ziyi (ziyitang@caixin.com)

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