China auto association flags concern over dealership losses to government

Car dealers incurred combined losses of 138 billion yuan ($19.55 billion) in the first eight months of the year as they were forced to sell new cars at sizable discounts, the China Automobile Dealers Association (CADA) said on Monday. The losses were flagged in an emergency report on the financial difficulties and shutdown risks facing dealerships amid a price war in the world's largest auto market, which was recently submitted by CADA to relevant government authorities. The overall discount rate for new cars stood at 17.4% in August, CADA data showed.