Recently, a report issued by the China Automobile Dealers Association disclosed that in 2025, the domestic automotive 4S network witnessed substantial structural changes. Throughout the year, nearly 5,000 4S dealerships either closed down, consolidated, or made transitions. Over 80% of dealers found themselves trapped in the dilemma of "selling at a loss" due to price inversions. By the end of 2025, the total number of passenger vehicle 4S dealerships reached 32,432, showing a 1.4% year-on-year decrease. Although the rate of decline had eased compared to the previous year, the trend was still evident.
It's worth noting that the network for traditional fuel-powered vehicles kept shrinking, while the 4S network for new energy vehicles (NEVs) continued to expand. Among the dealerships that left the market, 76% were domestic brands, with joint ventures and luxury brands accounting for 15% and 9% respectively. Regarding newly added 4S dealerships, NEV brands made up 56%, and domestic brands constituted 88%. In terms of operational performance, 81.9% of dealers encountered price inversions. Among them, 51.5% faced inversion margins exceeding 15%, leading to significant losses in their new vehicle businesses.