Audi has announced plans to provide 1.2 billion yuan (around $193 million) to its dealership network in China. Automotive News Europe is citing two sources close to the matter who say the money will be transferred in the near future to help out the dealers in a more and more competitive market. Parent company Volkswagen confirmed earlier this month they plan on giving financial aid to select dealers in China due to a slowing demand caused by the poorer economy because of the stock market’s volatility. Toyota and BMW are doing the same with their dealers by providing them with funds to cover the losses generated in the first half of the year.
Dealers in China are asking for lower sales targets as well as a larger share of profits. Audi has decided to lower its initial sales target of 600,000 units for 2015 to last year’s level when they delivered 578,932 cars. This decision has been taken as demand has weakened, with sales in June decreasing by 5.8% to 47,831 units.
BMW hasn’t been doing that great either in China as last month they sold 1.3% fewer cars compared to June 2014. As for Mercedes-Benz, they posted a massive 39% sales hike after restructuring its operations in China and adding more models.