China Auto Logistics has announced its results for the third quarter ending on September 30th this year, revealing overall decreases in net revenue and profits from the same time last year. While imported vehicle sales, which make up almost 100% of third quarter revenues, were up from the second quarter, they also continued to be affected by legislation at motor registration offices and customs control.
Net revenues were just more than $343m compared with around $428m on the previous year.
This was attributed to China Auto Logistics’ policy of aggressive pricing to enable Chinese customers to experience low prices on imported luxury cars.
The number of cars sold by the company in the third quarter was around 1,250 compared with slightly more than 2,000 in the third quarter of 2012.
"We continue to believe in the growth potential for imported luxury vehicles in China as the economy continues to rebound,” said China Auto Logistics’ CEO and chairman, Tong Shiping. “Consequently, painful as it is in the short-term, we will continue to press ahead at least through the remainder of the year with our aggressive pricing.”
Shiping said that its lower pricing strategy, coupled with the provision of its vehicle financing, would challenge competitors to match its offer.
The company is also currently looking to buy the Airport International Automall in Tianjin. Should the deal go ahead it is expected to be a big step in the company’s expansion of automotive related services.