New-Car Sales Growth Slows to 5% in China

BMW dealer, China

Retail deliveries of passenger vehicles in China expanded by a modest 5% to 1.7 million units last month, according to the country's Passenger Car Assn.

Bloomberg News says dealers are offering heavy discounts to achieve full-year sales goals imposed by manufacturers. The China Auto Dealers Chamber of Commerce complains that reluctance by carmakers to match output to demand has loaded retailers with expanding inventories and strained their finances.

Another dealer group says supplies of unsold cars climbed in November to their highest all year. BMW dealers in the country are asking the company to lower sales targets that must be met next year to qualify for bonuses. They also want more cash rebates on the vehicles they sell.