Over 12 Dealerships Shut Daily as Industry Shifts to Asset-Light Model

By the end of 2025, the total number of automotive 4S dealerships nationwide stood at 32,432, down 1.4% year-over-year—the first-ever annual decline. Approximately 5,000 outlets exited dealer networks throughout the year, averaging more than 12 closures per day. Dealers普遍 faced price inversions, with new vehicle retail prices falling below procurement costs, driving gross profit margins down to -25.5%. The inventory warning index remained persistently above the 50% boom-bust threshold, with 3.45 million unsold vehicles tying up over RMB 510 billion in capital and placing continuous strain on cash flows. The widespread adoption of new energy vehicles (NEVs) has reduced maintenance frequency, cutting into after-sales revenue, while tighter financial regulations have sharply diminished commissions from insurance and auto loans. Meanwhile, fixed costs—such as rent and labor—remain stubbornly high, making the traditional asset-heavy operating model unsustainable. The industry is now shifting from an "asset-heavy, high-inventory" approach toward a "light-asset, service-focused" model. Several automakers have already adjusted their channel strategies: Porsche plans to cut its dealer network by one-third, while Volkswagen and Audi are accelerating deployment of a "small-store, fast-build" model to penetrate lower-tier markets. Leading dealership groups like Grand Auto have already fully shuttered select outlets.