Nearly 5,000 Domestic 4S Stores Shut Down in 2025 as New Energy Channels Expand Against the Tide

In 2025, China's automotive 4S dealership network underwent significant restructuring, with nearly 5,000 outlets closed, merged, or converted throughout the year. More than 80% of dealers found themselves in a price-inversion predicament—selling vehicles at a loss. By year-end, the total number of passenger vehicle 4S stores stood at 32,432, a slight year-over-year decline of 1.4%. The traditional fuel-powered vehicle dealership network continued to shrink, with domestic brands accounting for 76% of all exits. In contrast, new-energy vehicle (NEV) brands emerged as the primary drivers of expansion: of the nearly 5,000 newly added outlets, 56% were NEV-focused, and domestic brands represented 88% of all new additions. Currently, domestic-brand 4S stores total 21,371, comprising 66% of the market—a 1.1% year-over-year increase. Meanwhile, outlets for joint-venture and luxury brands declined by 5.7% and 5.8%, respectively. Mounting operational pressures have left 51.5% of dealers selling new cars at prices more than 15% below cost. Over half failed to meet their sales targets, and dealer satisfaction with OEMs plummeted to a record low of 60.8 points.