Carmakers seek to diversify China revenues

Xi'an, China

AS CHINA'S economy loses pace and car sales flatline, carmakers are having to redouble their efforts to squeeze every dollar from their dealerships - beefing up after-sales and financing services that are a staple in more developed markets.

New car sales still make up a "ridiculous" 70 per cent or more of dealer revenue in China, compared to as little as 5 per cent in a market like Britain, where dealers make most of their money from car repairs, insurance and car finance, said an executive at a chain of luxury dealerships in China.