Car Dealers in China to Receive Aid from Audi
Published By : 21 Jul 2015 | Published By : QYRESEARCH
Audi will soon be extending a financial aid worth US$193 million to its Chinese dealers. This will be done with a view to give a boost to the luxury cars segment which at present is witnessing sluggish rate of growth. According to a senior official at Audi, the company gives a lot of importance to financially sound dealer network, stable price levels, and very importantly, excellent service quality.
Audi also believes that these three aspects are of utmost importance in a typically competitive business environment which witnesses fluctuating prices and business conditions. The subsidy that will be extended to the dealers has not yet been declared. Interestingly, the pattern of subsidy that Audi follows is quite similar to that of Volkswagen which is its parent company. This company has agreed on providing financial assistance to a few of its dealers in China amidst declining demand for vehicles and a simultaneous fall in stocks.
It was also agreed upon by Toyota Motor Corp. and the BMW Group to provide financial aid to the dealers in order to tackle the problem of losses that took place in the beginning of this year. With waning demand conditions, majority of the dealers are coming together to manage the problem of low demand.
An analyst at Shanghai expressed that dealers these days do not need to rely entirely on car manufacturers for the sale of cars. It is also anticipated that various other automakers may start following the same strategy as Audi, in the months to come. Moreover, Audi has also brought down its sales target that it had set for the year 2015, as regards China. The amount offered by Volkswagen to the dealers was about one billion Yuan. The company also reduced the prices of a few of its vehicles and also extended incentives to many of its buyers.