Auto Market Deep Freeze: Mass 4S Store Closures Trigger Sales Job Crisis

At the start of 2026, the crisis facing China’s auto dealerships continues to worsen. According to public data, nearly 15,000 authorized 4S dealerships have exited the network between 2021 and 2025, with over 4,400 closing in 2024 alone—averaging 12 closures per day. In 2026, the situation escalated further as Tongyuan Group, the largest dealership group in western China, and Henan Dong’an Holdings both defaulted on obligations, impacting more than 180 outlets nationwide, including luxury brands that were previously considered immune. Plagued by excessive inventory, intense price wars, and pressure from automakers to accept unsold vehicles, more than 60% of dealers now lose money on every car sold, with some outlets reporting losses on each vehicle they sell. Frontline sales staff are bearing the brunt: customer traffic has plummeted, many go months without a single sale, base salaries are insufficient to cover basic living expenses, and numerous employees have been placed on early leave—some uncertain if they’ll ever return to work. One salesperson admitted candidly, “In the past, we used persuasive tactics to ‘trick’ customers into buying; now, we can only ‘trick’ ourselves into believing the market will recover.” In a bid to survive, some dealers have turned to live-streaming car sales, pivoted toward new energy vehicles (NEVs), or adopted leaner operational models. Leading players like Zhongsheng Group are accelerating their entry into NEV channels such as Huawei’s Smart Selection, while brands like Lincoln are piloting smaller-format showrooms. Sales roles themselves are being reshaped amid this transformation—from live-stream hosts to providers of after-sales value-added services—forcing employees to rapidly acquire new skills. The era of easy profits in China’s auto market is over, and industry consolidation continues unabated.