Over 1,500 Dealerships Face Closure, 70% Sales Staff Quit as Traditional Distributors Struggle with Transformation Pain

In 2025, Chinese auto dealerships are undergoing a dramatic shakeout: nationwide, an average of four to five outlets are closing daily, with nearly 1,500 expected to exit the market by year-end. Well-known luxury-brand 4S stores in cities like Shanghai, Hangzhou, and Kaifeng have successively shut down, many replaced by new energy vehicle (NEV) brands. Meanwhile, frontline sales staff are leaving en masse—resignation rates approached 70% in the first three quarters. Plummeting incomes, endless overtime, and lack of on-call allowances have become the norm, prompting many salespeople to return home early or switch careers. Even more alarming, over half of all dealerships are operating at a loss. Specifically, 58.6% of fuel-vehicle dealerships are in the red, and 74.4% face "price inversions"—losing money on every car sold. Mounting pressures stem from automakers forcing inventory onto dealers, complex rebate mechanisms, and rigid sales targets. In response, leading groups like Zhongsheng and Yongda are pivoting their strategies—expanding into NEV sales channels, battery maintenance services, or overseas distribution—in search of new opportunities amid the industry’s deepening crisis.