Slowing Chinese Economy Leads Car Manufacturers to Focus More on Communicating with Dealers

Published By : 30 Apr 2015 | Published By : QYRESEARCH

As car sales in China decrease with the slowing economy, the global car manufacturers in China are concentrating on after-sales service to increase communication with their customers. Data shows that the passenger-car sales growth in China is expected to slow down this year with an estimated sale of 21.3 million vehicles. Compared to 9.9% growth in the sales of passenger-cars last year, this year would see a growth of only 8%. 

As Nissan Motor Co. experienced a weak sales growth of just 2.7% in 2014, it conducted a survey of its dealer network in China as well as started a dealership advisory system to communicate more with the dealers. The dealers of the foreign car makers have been complaining about the unrealistic sales target set by the manufacturers in the current economic scenario of China. Some of the dealers of BMW blurted out their problems to the media. The company, however, mentioned that they are in touch with their dealers regularly. To give an idea about the dealerships in the U.K., Jaguar Land Rover brought a group of Chinese dealers in the U.K. General Motors Co. is also working with its Chinese dealers to focus on developing business beyond new car sales. Honda Motor Co. is considering following Nissan in establishing a dealership advisory system.

According to Yasuhide Mizuno, the president of Guangqi Honda, one of Honda’s Chinese partners, the dealers in China also need to stress more on after-sales service and marketing strategy, as commonly practiced by the dealers in the U.S. and Japan. 
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