Luxury brand 4S stores in Beijing, including those of BMW, are undergoing downsizing. The Beijing Junbaohang BMW 4S dealership might shut its doors next year, and there's a high probability that the adjacent Porsche center will be relocated alongside it. The nationwide trend of 4S store closures persists, with a net reduction of 650 stores and 2,749 dealerships exiting the network in the first half of 2025. Dealers are under mounting survival pressure, as the proportion of loss-making dealerships has surged from 41.7% in 2024 to 52.6% in the first half of 2025. Profit margins, working capital, and inventory levels have emerged as the three major hurdles they confront. The channel contraction among luxury brands is pronounced, prompting automakers to actively seek remedies. For instance, Porsche is refining its channel layout, while Lincoln is delving into an asset-light operational model. The scenario is somewhat more favorable for new energy and emerging automakers, yet only 42.9% of them are turning a profit. Automakers like NIO and XPeng have embarked on transformations in their sales models, and dealers too are exploring novel business models. At present, the automotive sales sector stands at a pivotal juncture, with channel development exhibiting trends of hybrid models and streamlined operations.