, , :
09.10.2025
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$ 81.55
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Chinese car dealers are facing a liquidity crisis and are asking for government support

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Automotive distributors in China are suffering losses and experiencing an acute shortage of funds amid falling demand and price competition.

According to Cui Dongshu, Secretary General of the Association of Passenger Cars of China, dealers engaged in the sale of new cars are faced with large-scale financial difficulties and risks of disruption of financing chains. According to him, many companies have already found themselves on the verge of losing liquidity and cannot find a way out of this situation.

The expert explained that dealers are under intense pressure due to the discrepancy between wholesale supplies and demand. To maintain turnover, they have to sell cars at low prices, which only increases losses. In addition, the price wars between automakers have exacerbated the imbalance in the market, reducing the time required to maintain working capital "to the limit."

According to Cui Dongshu, the profitability of car sales in China remains extremely low, and competition is unprecedented. He stressed the need for urgent government intervention and suggested developing step-by-step financial support measures to stabilize the situation in the industry.