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Auto dealers face choices
www.chinanews.cn 2005-04-08 15:00:59
With the implementation of China's "Administration Measures on
Distributing Automobile Brand-names," small and weak automobile dealers
that have difficulty in attaining brand name authorization now face a
dilemma of narrowing business space. In China, over 30,000 car dealers
have registered with industrial and commercial departments. Only 2,000
(7%) are part of franchised sales networks (including 4S shops)
authorized by manufacturers. Over 90% of China's automobile dealers now
face two choices: become secondary dealers or be phased out of the
market. The automobile market must soon enter a new round of
restructuring.
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