Beijing plans to shake up the domestic car market by relaxing restrictions on dealers so they can sell vehicles from multiple makers.
China’s Ministry of Commerce, which oversees car sales, has published for public comment rules that would bar manufacturers from forcing unilateral sales quotas on dealers or requiring them to take on unpopular models or inventory. Dealers would also be permitted to stock cars from more than one manufacturer and sell excess stock to each other.
Global carmakers are already facing a challenge in the world’s largest market as China’s economic slowdown and vehicle licensing restrictions in many big cities start to eat into years of reliable profits.
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