China auto dealers chamber urges the industry to resist price wars

BEIJING, June 3 (Reuters) - The auto industry should "resolutely resist" price wars, the China Auto Dealers Chamber of Commerce said on Tuesday.

Car dealerships have been hit by increased operating pressure, reduced profitability, high vehicle inventory, and tight working capital amid excessive competition, the chamber said in a statement, urging to improve the survival of car dealers.

Automakers should reasonably set annual production, sales targets and not to transfer inventory to dealers, said the statement.