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CN Auto Dealers Urge Automakers to Avoid Frequent Price Adjustments, Inventory Shifts
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Under the impact from a new round of price wars, the situation faced by auto dealers has become more severe, and the China Auto Dealers Chamber Of Commerce (CADCC) firmly resisted the involutionary competition behavior primarily based on price wars, the CADCC said.

The CADCC demanded the prevention of frequent adjustments to sales policies and product selling prices, which increase sales difficulties for dealers and affect the brand's image among consumers, aiming to improve the survival conditions of auto dealers, and adhering to 'production based on sales'.

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Automakers should reasonably set annual production targets for enterprises and sales targets for dealers, and prohibit shifting inventory to dealers or forcing them to stockpile vehicles.

The CADCC also called for a reduction in dealer inventory levels, correction of the upside-down purchase price issue, timely rebates to dealers, decrease in the payment cycle for dealers, reasonable determination of the number of test drive vehicles and alleviation in the liquidity pressure of dealers.
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