At the 2026 China Auto Dealer Conference on May 27, the China Automobile Dealers Association released the "2026 China Auto Dealer Development Report." Top 100 dealer groups saw 2025 total revenue decline 8.8%, but opened 920 new NEV and self-owned brand outlets while closing 576 inefficient fuel vehicle outlets. NEV outlet share has reached 43%, with 81.9% of dealers facing price inversion.
Industry Restructuring Year: From Rebate Profits to Service Profits
2025 has become the first year of restructuring for China's auto distribution industry. CADA Deputy Secretary Wen Sijing stated at the conference that the traditional model of volume-driven new car sales and rebate-based profits has completely failed. Only companies that complete the transformation from "car sellers" to "full-lifecycle automotive service providers" will survive.
The report shows that 2025 Top 100 dealer group total revenue declined 8.8%, with asset investment down 13.3%. This indicates most groups are proactively reducing traditional heavy asset investment, shifting to explore light-asset NEV models.
The "One Increase, One Decrease" Network: 920 New vs. 576 Closed
From the scale and network structure of leading dealer groups, a notable trend is proactive reduction with quality improvement and structural optimization.
Throughout last year, Top 100 groups opened 920 new stores, mainly concentrated on NEV and self-owned brands, while closing 576 outlets, the vast majority being inefficient fuel vehicle brands. Currently, the NEV outlet share of Top 100 groups has reached 43%, approaching half.
This channel restructuring brought Top 100 full-year NEV sales to 2.03 million units, a significant 35.4% YoY increase, with penetration exceeding 30%.
81.9% Price Inversion: Dealers Trapped in Selling Cars
Price inversion has become a universal dilemma for the dealer industry. The report shows 81.9% of dealers face price inversion, where new car selling prices are below manufacturer purchase prices. This means losing money on every car sold, with dealers relying only on after-sales and rebates to sustain operations.
Wen conducted in-depth analysis of Top 100 across four dimensions:
- Scale and Network Structure: Reduction with quality improvement, rapid NEV outlet share growth
- Profit Structure and Quality: New car profits shrinking, after-sales and financial services becoming primary profit sources
- Operational Efficiency: Inventory turnover pressure increasing, capital costs rising
- Customer Operations: Transitioning from one-time transactions to full-lifecycle customer value management
NEV Channel Transformation: Direct Sales + Agency + Authorization in Parallel
As NEV penetration exceeds 60%, channel models are undergoing profound transformation. The traditional authorized dealership model faces challenges, with direct sales, agency, and authorization models developing in parallel.
| Channel Model | Representative Brands | Advantages | Challenges |
|---|---|---|---|
| Direct Sales | Tesla, NIO | Price uniformity, experience controllable | High capital occupation, slow expansion |
| Agency | VW ID, BMW i | Light assets, price uniformity | Insufficient dealer motivation |
| Authorized Dealership | Traditional Brands | Fast expansion, broad coverage | Price inversion, inventory pressure |
New force brands tend toward direct sales or agency models, while traditional brands' NEV transformation wavers between authorization and agency. For overseas markets like Central Asia and Russia, channel model selection will directly affect brand entry costs and user experience.
Implications for Export Markets
The restructuring of China's auto dealer industry has indirect but important reference value for export trade. For Chinese models exported to Central Asia, Russia, and other markets through platforms like EX1000.COM, domestic channel maturity experience can be transplanted overseas.
Especially for NEV models, after-sales systems, charging network layout, and customer operation models are core concerns for overseas buyers. The domestic dealer transformation from "car sellers" to "service providers" offers a replicable template for overseas service system construction.
