CRI听力:China's Car Industry Sees Slowdown in Last 3 Quarters

The inventory has been piling as financing for the industry has weakened. This has resulted in the closure of many automotive sales and service centers.

Luo Lei, a vice secretary of China Automobile Dealers Association, says the profit decline has hurt.

"The dealers and auto companies have to bear both financial pressure and the risk of large quantity of storage. A high percentage of dealers suffer from profit loss."

The losses have hit the luxury sector the most, with average vehicles and SUVs only slightly affected by the slack in the industry.

According to an insider, the growth rate for luxury cars, previously double the average growth of the whole industry, is now only half of the industry average.

A luxury car dealer in Guilin city, Guangxi Province says many stores are closed.

"One of the largest stores in Guangxi has purchased over 20 other stores and they will probably develop into a comprehensive store to expand their services."

Experts from the industry say multiple reasons have led to this current situation, including downward pressure in the economy, over-production, and saturated demand.

Some dealers say they hope they can cooperate with car manufacturers to find ways to relieve pressure within the luxury car sector.

"Now many car manufacturers have lowered their prices and improved their services. We also should realize that it's now a buyer's market and customers have more options. So manufacturers and dealers will have further dialogue to control the pressure and risk in the market."

However, experts in the industry think signs of recovery will be seen later this year.

"The slow growth has been continuing from last June and the negative growth will also last for a while but we expect the market will go back to normal in the fourth quarter."

According to the official data, the month on month sales growth in the Chinese car industry has continuously dropped for four months, starting in April, and the Vehicle Inventory Alert Index has now been over the alarm line for over 10 months, as of July.