Deloitteâ€™s Motor Industry Services group in Hong Kong has launched what is said to be the industryâ€™s first China luxury and non-luxury operational performance benchmarks.
Vincent Liew, CEO of the Asian operation of DMIS, said that although Chinaâ€™s car imports increased by 53% in the first half of 2008, actual passenger car sales growth slowed to 6% in August and about 2% in September. This is the weakest level in two years, according to a survey conducted by China Economic Review Publishing.
Liew said that the 2008 growth forecast for the mainland auto market is 10%, down from the 2007 growth rate of 15%. Factors such as the recent increase in sales tax on large vehicles, the economic slow-down and increased brand competition mean dealers need to manage their dealerships effectively for long-term success.
Liew added that Deloitteâ€™s Motor Industry Services group is advising various dealerships on how to increase their operational performance by effectively managing the factors within their control.