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Insurance offers Chinese dealers alternative revenue stream

As dealers in China seek a more diversified approach, insurance represents an emerging area of interest

As China’s new car market momentum slows, dealers are transitioning from a business model dominated by new-vehicle sales to a more diversified approach in which service, parts and finance play a greater role in profitability. General Motors is following the trend. Together with SAIC, one of its Chinese joint venture partners, it has set up a new company to offer car buyers insurance from authorised dealerships.

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