Beijing Hyundai's Hunan Dealers Request to Suspend Vehicle Pickup

TapTechNews August 8th news, today, a letter of Beijing Hyundai Hunan dealers jointly requesting to suspend vehicle pickup circulated on the internet. According to the First Financial News, a dealer in the Hunan region said that this letter is true, and the 9 dealers who sent the joint letter account for the majority in Hunan Province. Beijing Hyundai responded that it is currently understanding the situation.

The letter stated that in view of the extremely high inventory pressure, extremely difficult operation, and extremely serious losses of all dealers in the Hunan region and other factors, all dealers in Hunan unanimously requested to temporarily stop picking up vehicles from your company as of August 8, 2024, and no longer accept the vehicles automatically distributed by your company. Otherwise, all consequences will be borne by your company. And your company should immediately solve the existing inventory of dealers in the Hunan region, as well as fulfill all previous promises and incentive policies. There are the seals of 9 car dealers at the bottom of the letter.

Public information shows that Hyundai Motor's sales in China reached 1.14 million units in 2016, but since 2017, it has suffered setbacks in marketing in China and sold the Beijing First Factory in 2021. In January this year, Beijing Hyundai's Chongqing factory was sold to the Chongqing Liangjiang New Area Yufu Industrial Park Construction Investment Co., Ltd. for 1.62 billion yuan, less than half of the initial base price of 3.68 billion yuan.

TapTechNews noted that Beijing Hyundai announced the sales data of 2023 as 257,000 units, an increase of 2.8% year-on-year. The sales volume of Beijing Hyundai in the first half of this year was 100,000 units, while the sales volume in the same period last year was 123,000 units.