BYD -traders who fail show financial pain in China car sector

Car dealer groups in two provinces have been pocketing in China since last month, both of them at CO. -retailers, proof of difficult competition in the country’s car market and proof that not even selling the country’s number 1 brand can protect businesses from financial problems. The XingQI group stores in Liaoning province have stopped delivering new cars or delivering more than 60 customers, according to Liaoning Radio and Television Station, while more than 500 people formed online groups for consumer rights to claim from Qiancheng Holdings, which operated about 20 showrooms in Shandong province. It also looks like the stores are now closed, the Chinese media auto -auto -author reported on May 6. Car dealers in China have a profound shift that is brought about by the transition to electric vehicles and a slowdown in consumer spending left with stock. Most EV manufacturers now have a direct-to-consumer model, while the reduced interview that EVs and hybrids needs also hit the bottom lines of traders. Inventory levels in April reached 3.5 million cars, or 57 stock days, the highest since December 2023, according to data shared earlier this week by Cui Dongshu, the Secretary -General of the China Passenger Car Association. Qiancheng Holdings said adjustments in the Trader policy have put tremendous pressure on his cash flow over the past two years. And due to other Shandong Province traders undergoing, local banks have sharpened the lending and contributed to the pain, it states in a April 17 letter distributed on social media. Calls to Qiancheng Holdings and Xingqi Group were not answered. Representatives of BYD did not respond to requests for comment. One customer in Jinan, the capital of Shandong, told Bloomberg that she bought a bed Seagull hatchback at one of Qiancheng’s stores last June. The dealer gave her lifelong service and also sold her an insurance package for 10,500 yuan. When she returned to the showroom earlier this year to renew her insurance, she found it was closed. She called the official hotline of BYD, but offered no solution, she said, and refused to be identified for privacy reasons. Many atds of traders have excess shares after the company launched a new advanced driver aid technology named God’s Eye in February that will be installed in most of its models. This meant that by -dealers had to get rid of older stock quickly. Inventory levels at its outlets were the third highest of all brands in January, according to an analysis of the Automobile Dealers Association of China. Under pressure to sell the cars, many traders used to lower prices by thousands of Yuan. © 2025 Bloomberg MP This article was generated from an automatic news agency feed without edits to text.