A group of Hyundai Motor Co. dealers in China seeks 800 million to 900 million yuan ($120 million to $135 million) in compensation from the automaker, saying Hyundai has cut the supply of models that it exports, resulting in dealership losses and closures.

 

The group's leader, Wang Rongzhen, told Reuters on Wednesday that the automaker has scaled back the range of models it ships from Korea while it increases output in China.

 

"We sell cars," Wang said in an interview. "If you don't give us cars, naturally we won't be able to go on. We'll close." 

 

Wang estimated that import dealerships are suffering annual losses of 3 million to 10 million yuan apiece. The group represents 30 of the 40 remaining imported Hyundai dealers in the country. 

 

The Hyundai dispute is brewing as car dealerships in China -- surefire moneymakers for decades -- have endured a difficult transition to slower growth over the last two years. 

 

Many dealers are asking manufacturers to compensate them for their losses. Last year, Germany's BMW AG agreed to pay $820 million to cash-strapped dealers. 

 

According to the China Auto Dealers Chamber of Commerce, which is helping to organize the dealers, Hyundai's import-only dealer network has halved in size since 2014. 

 

In a statement this week, Hyundai said it is keeping communication open to find "an amicable solution" with the import-only dealers. The company noted that import dealers account for less than 1 percent of Hyundai's sales in China. 

 

Last year, the automaker sold 1.1 million passenger vehicles in China. It did not immediately comment Wednesday on the amount that Wang's group was seeking in compensation. 

 

Wang said that the group of dealers has met informally with Hyundai executives on and off since last month. 

 

Currently, only the Veloster hatchback coupe is consistently available to Hyundai import dealers in China, Wang said, with the Genesis luxury sedan and a large version of the Santa Fe crossover being supplied irregularly. 

 

Hyundai has said the dealers can apply to become vendors of cars made in China by Beijing Hyundai, its joint venture with domestic automaker BAIC Motor Corp. But no import dealership has successfully done so, Wang said. 

 

Sales for Hyundai overall in China fell early this year because of its aging product portfolio. But sales have rebounded since April, driven by the redesigned Elantra sedan. The company plans to finish building its fourth and fifth plants in China by next year.