Foreign Carmakers Struggling to Hit Sales Goals as Dealers Purchase too Much Stocks
Foreign automakers are struggling to dictate sales goals for the future as dealers are starting to complain to the government in the inflexible targets that was set during a market boom which obliged them to purchase too much stock then bear the brunt in the drop of demand. These automakers tuck to the targets all throughout 2014 and sold card to dealer on schedule. Although dealers slashed retail prices and booked the losses as sales growth in some say the biggest auto market that was half from the previous year of 14 percent.
Automakers have high market expectations, but in reality the supply far exceed the demand. In the past dealers were angry but didn’t speak out, but today they are making themselves heard as the situation is starting to be unbearable. A report from the biggest dealer could help change the balance of power as automakers are starting to change their expectations in an economy thst is expanding near its slowest rate in 24 years.
Nissan Motor and Honda Motor are now cutting their China sales forecasts last month and is said to likely miss their 2014 goal, while Germany’s BMW is expecting profit margins as the market normalizes after a growth spurt in the past years. These automakers are now making compromises to dealer in analysts say their worst spat ever. The past years automaker especially for luxury brands were too aggressive in their quest to gain the market share in China. And now as the problems is exposed there will be a obvious slowdown in their expansion in 2015.