A group of 30 Hyundai Motor Co dealers in China is seeking between 800 million ($120 million) and 900 million ($135 million) worth of compensation from the South Korean auto manufacturer for dealership losses and closures they blame on its manufacturing policy.

Wang Rongzhen, the group's leader, told Reuters on Wednesday that Hyundai has cut the flow of models it supplies to dealers of imported cars in China while boosting its car manufacturing arm in the country. The dealers admitted they are struggling with declining sales since authorized Hyundai dealers can only sell either China-made or South Korean-made units, but not both.

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"We sell cars, if you don't give us cars, naturally we won't be able to go on, we'll close," Wang said in an interview, estimating the group's losses amount to between 3 million ($450,000) and 10 million yuan ($1.5 million) annually.

In 2015, Hyundai dealers only sold a mere 7,000 imported vehicles, a sharp plunge from 37,370 in 2011. The group represents 30 of the roughly 40 Hyundai dealers left in the country, down by half over the past three years, according to The Wall Street Journal.

Hyundai has admitted that there has been a drop in the sales of its imported cars in China, noting that import dealers only account for one percent of its total sales in China. It said early this week that it is keeping close contact with the dealers to come up with an "amicable solution."

"We are concerned for our dealers, and a healthy dealer network is part of our strategy," Wu Yanbing, a representative of Hyundai China, said.

Wang revealed that the company has had informal meetings with Hyundai executives since last month. However, Hyundai did not comment on Wednesday on the amount that the group is seeking.

TagsHyundai, Hyundai dealers, dealer compensation, car manufacturing, dealership