Seat has no plans to establish franchised dealership network in China, report says image

VW-owned Spanish carmaker Seat has no plans to establish a franchised dealership network in China, Seat’s local representatives said.

A recent entry to the Chinese market, Seat will continue to use VW’s dealerships to sell its Leon compact hatchback in China, a representative told the Beijing Times, quoted by Gasgoo.com.

The Leon, which made its Chinese market debut in March, has a price tag of between 243,900 yuan and 294,600 yuan ($38,930-$47,022). Sales are not going too well, as the price tag proved to be too high for Chinese consumers. Since authorized dealerships reported monthly sales in the double digits, Seat decided to lower the Leon’s price by 85,000 yuan ($13,567) early last month.

To boost sales, the Spanish manufacturer signed an agreement with China Grand Auto to sell Seat vehicles at its import automobile dealerships. According to Seat representatives, the agreement will help Seat reduce sales costs, boosting its overall profits.

Seat cars are currently available in 12 Volkswagen 4S dealerships nationwide, located primarily in second- and third-tier cities. The Spanish brand currently depends on Volkswagen’s facilities for its aftermarket sales service.