On November 6, at the 2025 Annual Conference of China's Automobile Circulation Industry, Xiao Zhengsan, President of the China Automobile Dealers Association, pointed out that currently, dealers of luxury, joint venture, and domestic brands are generally facing challenges such as unreasonable network layouts, weak profitability, and strained relationships with manufacturers, with many operating at minimal profit or incurring losses. The root cause of these issues lies in supply-demand imbalances, leading to excessive network density, inventory backlogs, and inverted purchase-sale prices. Currently, the association, under the guidance of relevant departments, is conducting research on exit mechanisms. The next step will focus on promoting the Demonstration Text (demonstration text, keep as is if no proper translation found, or translate as 'model text') of authorization contracts for brand dealers and accelerating the development of industry standardization documents for exit clauses in authorization contracts.