There is a decline in customer satisfaction in China as experienced salespeople are in short supply as auto dealerships continue to expand. Coupled with the slow down in Chinese vehicle sales this year, there is a “notable deterioration” in overall sales satisfaction among new-vehicle owners in China.

After experiencing explosive increases during the past decade, the growth in China’s passenger-vehicle sales slowed significantly in late 2011. Year-to-date 2012 vehicle sales are up 8%. Manufacturers – taken by surprise in what was a robust market – have not cut production to meet current demand. Instead they continued to add capacity and open new dealerships in anticipation of a return stronger growth in the future.

While this scenario sound all too familiar to western observers, in the current Chinese market, this has led to increased inventories at dealerships and acute pressure to sell vehicles with inexperienced staff.