Latest news with #YangtzeRiverDelta
Yahoo
01-07-2025
- Automotive
- Yahoo
Car dealers in China's Yangtze delta region warn of 'severe challenges'
BEIJING (Reuters) -Car dealers in one of China's richest regions are appealing to automakers to overhaul sales strategies amid mounting pressure on their cash flow and high inventories in another sign of the growing toll of the price war in the world's largest car market. Four dealer associations based in the Yangtze River Delta encompassing Shanghai city and the provinces of Jiangsu, Zhejiang and Anhui, issued a joint letter on their WeChat accounts on Monday, going public with the pressures they face. Most automakers sell their vehicles in China via dealerships, and the Delta region accounted for 23% of domestic car sales in 2024. "Car dealers in the Yangtze River Delta region face severe challenges such as high inventory, disorderly market competition and increased risk of capital chain rupture," said the letter that was addressed to "all automakers". "Some automakers have forced dealers to sell new cars at prices below cost," they added without naming any firms, saying such a strategy could violate China's competition laws. Dealer associations in the provinces of Henan and Jiangsu issued similar letters last week, while suppliers and dealers have both asked carmakers to pay them more promptly. The complaints indicate that Chinese automakers are continuing a years-long price war despite orders from regulators to stop as the strategy eats into the industry's profitability and financial health. The four dealer associations also said that inventories were above healthy levels. A gradual suspension in car loans in the region since June has compounded the problem leaving consumers who thought they had financing unable to pick up their cars, they added. The dealers made a number of suggestions, including that carmakers should allow them to suggest a reasonable inventory limit and adjust sales targets to better recognise the capacity of the regional market. China's legislature passed amendments to the anti-unfair competition law last week. The revised law strengthens rules against forced below-cost pricing and will come into effect in October. Sign in to access your portfolio
Reuters
01-07-2025
- Automotive
- Reuters
Car dealers in China's Yangtze delta region warn of 'severe challenges'
BEIJING, July 1 (Reuters) - Car dealers in one of China's richest regions are appealing to automakers to overhaul sales strategies amid mounting pressure on their cash flow and high inventories in another sign of the growing toll of the price war in the world's largest car market. Four dealer associations based in the Yangtze River Delta encompassing Shanghai city and the provinces of Jiangsu, Zhejiang and Anhui, issued a joint letter on their WeChat accounts on Monday, going public with the pressures they face. Most automakers sell their vehicles in China via dealerships, and the Delta region accounted for 23% of domestic car sales in 2024. "Car dealers in the Yangtze River Delta region face severe challenges such as high inventory, disorderly market competition and increased risk of capital chain rupture," said the letter that was addressed to "all automakers". "Some automakers have forced dealers to sell new cars at prices below cost," they added without naming any firms, saying such a strategy could violate China's competition laws. Dealer associations in the provinces of Henan and Jiangsu issued similar letters last week, while suppliers and dealers have both asked carmakers to pay them more promptly. The complaints indicate that Chinese automakers are continuing a years-long price war despite orders from regulators to stop as the strategy eats into the industry's profitability and financial health. The four dealer associations also said that inventories were above healthy levels. A gradual suspension in car loans in the region since June has compounded the problem leaving consumers who thought they had financing unable to pick up their cars, they added. The dealers made a number of suggestions, including that carmakers should allow them to suggest a reasonable inventory limit and adjust sales targets to better recognise the capacity of the regional market. China's legislature passed amendments to the anti-unfair competition law last week. The revised law strengthens rules against forced below-cost pricing and will come into effect in October.
South China Morning Post
24-06-2025
- Business
- South China Morning Post
How China's Yangtze River Delta became a tech powerhouse
In Suzhou, eastern China's Jiangsu province, the start-up Magic Lab specialises in full-sized humanoid robots designed to interact with people and work in factories – just one example of the Yangtze River Delta region's transformation into a national innovation hub. 'More than 90 per cent of the components, including critical parts like torque motor joints, actuators, control units and dexterous robotic hands, are developed in-house and locally manufactured,' said Wu Changzheng, the company's president and a graduate of Shanghai Jiao Tong University. 'The other 10 per cent is in central processing units (CPUs).' Magic Lab is one of thousands of cutting-edge ventures reshaping Jiangsu and neighbouring Zhejiang province. Once known for producing textiles, chemicals and machinery, the Yangtze River Delta is now home to a new generation of firms developing technologies critical to China's future. The start-up has developed a general-purpose AI model that integrates sensing, navigation and movement control, enabling its humanoid robots to quickly adapt to tasks and cooperate in real-world environments. According to Wu, the local government has fostered a supportive environment through tax incentives, industrial estates and other measures, providing the company with a solid foundation. Most of its funding comes from private sources, with the firm largely driving its own research and development. One of the main factors attracting MagicLab to Jiangsu is its mature manufacturing base — particularly in next-generation information technology, high-end equipment, new materials and other advanced sectors. This offers quick access to upstream and downstream support and helps reduce supply chain costs, according to the company. Based in the same city as appliance unicorn Dreame Technology – one of Magic Lab's investors – Wu's team has deployed its humanoid robots on the partner's factory floor to gather real-world data and explore multi-robot coordination, a field still in its infancy in China.
