On October 7, 2025, Cui Dongshu, the Secretary-General of the China Passenger Car Association, penned an article highlighting the dire situation faced by Chinese auto dealers. Currently, these dealers are grappling with widespread losses in new car sales. They are generally confronted with the risks of cash flow shortages and fractured capital chains, with their survival plight becoming increasingly severe.

The primary challenges are as follows: Weak consumer demand, coupled with the pressure exerted by manufacturers' wholesale volumes, has led to high inventory levels. This situation compels dealers to resort to selling cars at low prices. The intense price wars have created a paradoxical scenario where, in terms of pricing, purchases surpass sales. As a result, dealers incur greater losses with each additional unit sold. Moreover, fulfilling financing obligations upon maturity becomes a daunting task, disrupting the smooth flow of operating cash.

Presently, the time span for which dealers can sustain their working capital has reached its breaking point. They are plagued by low sales gross margins and high competitive pressures. Additionally, there is an urgent need to enhance profitability in the used car business.

In light of these challenges, Cui Dongshu has called upon relevant departments to implement phased financial relief policies. These policies should include organizing specialized research, formulating financing support measures, guiding financial institutions to flexibly extend loan terms, increase credit lines, and broaden loan scopes. Furthermore, policy banks should be encouraged to establish special policies, and incentives for loan interest subsidies should be provided.