China Automobile Dealers Association: New car business losses for automobile dealers will intensify by 2025, while profit margins will shrink.

The China Automobile Circulation Association has issued a document stating that the Chinese automobile market in 2025 is complex and changeable, with the government introducing multiple policies to support and stabilize car consumption. In particular, the "two new" policies have effectively promoted the release of automobile demand. However, on the distribution end, automobile dealers have generally failed to meet their annual sales targets, with prices continuing to fall, new car businesses facing increasing losses, and the number of dealers operating at a loss increasing while profits are shrinking. In order to timely grasp the operational situation of automobile dealers in 2025 and understand the pressures and difficulties they currently face, a national survey of automobile dealer survival conditions was officially launched in early January 2026. After two months of questionnaire collection and investor interviews, the survey covered over 70 large and medium-sized automobile dealer groups with 4S stores and over 200 small groups and individual stores, with a total of 1375 valid questionnaires collected. In 2025, over half of the dealers did not meet their annual sales targets, with only 44.3% of dealers achieving their annual goals. The completion rate of sales targets was lower than in 2024. There was a significant difference in the completion rate of targets between domestic brands and luxury/imported brands, with over 50% of dealers of luxury/imported and joint venture brands achieving their annual targets, while dealers of domestic brands generally had more aggressive annual targets and the lowest completion rate.