On March 18, the China Automobile Dealers Association (CADA) reported that the Chinese auto market is set to confront a multifaceted scenario in 2025. In response, the government has rolled out a series of policies aimed at bolstering and stabilizing auto consumption. Notably, the 'Two News' policies have significantly spurred the release of pent-up automotive demand. Nevertheless, in the distribution landscape, auto dealers have largely fallen short of their annual sales objectives. Persistent price inversions have exacerbated losses in the new car segment, with the loss margin expanding while profit margins contract.

Specifically, throughout the entirety of 2025, over half of the dealers were unable to attain their annual sales targets. Only 44.3% of dealers managed to meet these targets, marking a deterioration in performance compared to 2024. There were pronounced disparities in target completion rates across different brands. Luxury and imported brands, along with joint venture brands, witnessed over 50% of their dealers achieving their annual targets. Conversely, domestic brands recorded the lowest completion rates, a consequence of more ambitious annual target-setting.