2026 China Auto Dealer Conference Opens in Zhengzhou, Highlights Dealers’ Central Role and Unveils Key Industry Rankings

On May 27, 2026, the 2026 China Automotive Dealer Conference was held in Zhengzhou. Themed “Navigating Change Without Engaging in Cutthroat Competition, Charting a New Course for Sustainable Growth,” the conference focused on the transformation challenges and future direction of China’s automotive distribution industry. The meeting highlighted that the transition between old and new growth drivers in the automotive sector is accelerating, with mounting transformation pressures continuously transmitted downstream. In April 2026, the Automotive Dealer Inventory Warning Index reached 62.1%, with inventory levels for 17 mainstream brands exceeding two months’ worth of sales. Price inversions—where wholesale prices exceed retail prices—affected 82% of dealers, and among them, 51.6% experienced inversions exceeding 15%. In the second half of 2025, over 50% of automotive dealers nationwide reported losses, and the national 4S dealership network shrank by approximately 500 outlets for the year, marking the second consecutive year of negative net growth. At the conference, the “2026 China Automotive Dealer Development Report” and the “Top 100 China Automotive Dealer Groups 2026” ranking were released. According to the report, profitable dealers typically possess strong after-sales customer engagement capabilities, comprehensive used-car service chains, rapid adoption of new energy vehicles (NEVs), and refined operational management. In contrast, loss-making dealers remain heavily reliant on new vehicle sales and suffer systemic losses due to price inversions. The report recommends that dealers improve cash flow in the short term through asset optimization and digital cost reduction; in the medium term, strengthen after-sales and used-car businesses while leveraging financial services to build diversified profit models; and in the long term, strategically advance NEV transformation and overseas market expansion. Xiao Zhengsan, President of the China Automobile Dealers Association (CADA), stated that in the opening year of China’s 15th Five-Year Plan period (“Fifteen-Five”), the association will prioritize three key initiatives: facilitating policy implementation, building an integrated ecosystem centered on NEVs, used cars, and intelligent technologies, and optimizing manufacturer-dealer relationships. He encouraged dealers to enhance innovation proactivity and improve the efficiency and resilience of the distribution system. The conference also unveiled the “Top 100 NEV-Focused Automotive Dealer Groups 2026” and the “Top 100 Used-Car-Focused Automotive Dealer Groups 2026,” recognizing enterprises excelling in NEV service system development, digital transformation, used-car business depth, and exploration of diversified profitability models. Several speakers addressed industry trends during panel sessions. Xu Changming from the National Information Center noted that China’s domestic market will remain in a state of stock-based fluctuation, while overseas markets still offer growth potential—particularly driving used-car exports. He advised dealers to capitalize on the rise of Chinese brands, electrification trends, and internationalization opportunities. Wang Du, Vice President of CADA, analyzed four structural causes behind industry “involution” (excessive internal competition): misalignment between production and sales cycles, lack of transparency in commercial policies, imbalanced rights and responsibilities between manufacturers and dealers, and disorderly competition. He added that CADA is actively promoting a regularized communication mechanism between manufacturers and dealers, as well as establishing brand-specific sub-committees to standardize cooperation and mitigate involution. Chen Shu, Vice President of Tengyi Technology, introduced specific solutions leveraging ecosystem integration and AI-powered tools to help dealers address pain points such as customer acquisition costs, live-streaming expenses, and private-domain operations. Wu Songquan, an expert from China Automotive Technology & Research Center (CATARC), forecasted that by 2030, NEV penetration in the passenger vehicle segment will reach 72%, and surpass 50% in the commercial vehicle segment, with further industry consolidation expected during the “Fifteen-Five” period. Hong Shaoyong of Zhongsheng Auto shared his company’s international expansion experience, covering over 40 countries and operating 17 overseas warehouses (to expand to 40 by year-end). He detailed the advantages of AEO certification, trade models, and regional strategies. Lang Xuehong, Deputy Secretary-General of CADA, provided a systematic analysis of automotive market landscapes across 200 countries, destination selection for Chinese automakers going global, and prevailing channel models—offering valuable reference for dealers pursuing internationalization.