Car dealers will face severe challenges in 2025: the number of 4S stores will plummet, and most stores will suffer losses.

In 2025, domestic car dealerships will face severe challenges, with accelerated industry consolidation. According to Lang Xuehong, Deputy Secretary-General of the China Automobile Dealers Association, the number of dealerships is expected to decrease by nearly 1,500 throughout the year. The traditional gasoline-powered vehicle 4S network will shrink across the board, with marginal joint venture brands such as Chevrolet and Skoda bearing the brunt, while mainstream joint venture brands like Honda and Nissan will see a reduction in their outlets. Meanwhile, the number of outlets for new energy vehicles will continue to increase, and luxury brand dealerships will shift to independent new energy brands at similar price points, such as those affiliated with Huawei. The industry outlook remains sluggish, with over half of dealerships operating at a loss, and only 29.9% achieving profitability. Independent new energy brands...