China’s car dealers face financial turmoil in 2025 amid price war, leading to significant losses

Economy

1 year ago

News sources:

Credited from: SCMP

Over 30,000 car dealers in mainland China are predicted to struggle financially in 2025 due to ongoing price wars and competition from e-commerce.
A report from the China Automobile Dealers Association (CADA) highlights that many dealers did not meet their 2024 sales targets, leading to significant losses.
From January to November, the industry faced losses of 177.6 billion yuan (about US$24 billion), worsening from 84.5 billion yuan the previous year.
Approximately 4,000 dealers have shut down, and 27 percent of dealers fell below 70 percent of their sales projections last year.
No immediate recovery is expected, with experts anticipating that more dealers will exit the market as EV manufacturers sell directly to consumers.