How Long Does a Joint Venture Car Take to Be Considered as Inventory?

[MacGabriella]

Joint venture cars are considered as inventory if they have been unsold for more than six months from the production date. Introduction to Joint Venture Cars: As the name suggests, these are projects jointly established by Chinese and foreign investors. The Chinese side contributes by providing land and factory usage rights, as well as capital, while the foreign investors provide the brand, technology, capital, talent, etc. Joint venture cars are the products of such collaborations. The foreign side provides technology, talent, and brand for assembly within the country, but the core technology remains under foreign control. Introduction to Inventory Cars: Generally refers to cars that remain unsold for more than three months after leaving the factory. As a commodity, cars are large in size, expensive, and incur high storage costs, while also tying up significant funds for dealers. Therefore, dealers typically do not allow inventory cars to remain unsold for extended periods. However, for various reasons, there are indeed many cars in the market that have been unsold for more than three months.