Since 2017, automobile dealers have experienced a downturn, facing their darkest hours with industry giants going bankrupt, with 60% of businesses incurring losses, and widespread pessimistic media coverage. However, they are far from extinction; car manufacturers cannot do without them. Improving quality and efficiency, seizing the opportunities in used cars and breaking into overseas markets are their potential paths forward.
Article by | “Finance” reporter Li Xi Yin, intern Zhai Fang Xue
Editor | Shi Zhi Liang
Life hasn’t been easy for automobile dealers.
Compared to the hustle and bustle at tourist spots or the long lines of traffic on highways, this year’s Spring Festival period’s car sales were somewhat subdued. Industry insiders see the period before the Spring Festival as the golden time for car sales: consumers, having earned their annual income and received year-end bonuses, would purchase cars before the festival to return home with more prestige.
The Spring Festival in 2024 comes later, leading to an expected longer period of market activity before the festival. The industry anticipated a “good start,” but it seems to have fallen short of expectations. A person in charge of a luxury car dealership in Shanghai expressed his confusion to “Finance”: usually, car sales are expected in the three days leading up to the Spring Festival, but this year the showroom has experienced several days in a row without visitors, starting half a month early.
