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on september 26, the china automobile dealers association recently issued a statement saying that the ongoing "price war" has left auto dealers in a quagmire, and they are particularly faced with the prominent problem of extremely tight liquidity.

the china automobile dealers association has formally submitted an "emergency report on the current financial difficulties and closure risks faced by automobile dealers" to relevant government departments.

this statement points out the two major problems currently faced by automobile dealers: 1. factors such as excessive inventory force dealers to sell at low prices; 2. the risk of a broken capital chain due to losses.

"if the dealers' situation was not really extremely urgent, the association would not have issued such an announcement. there are too many dealers who have encountered difficulties and asked the association for help. the association conducted sufficient research before reaching this conclusion." said an insider of the china automobile dealers association.

it is reported that xing haitao, secretary of the party branch and secretary-general of the all-china federation of industry and commerce automobile dealers chamber of commerce, said in an interview with reporters that the automobile dealership industry is currently in a very critical stage. under the excessive involution of the industry, dealers are facing challenges such as increased operating pressure and reduced profitability.

at present, relevant departments have noticed these problems and attached great importance to them.

as the price war in the auto market intensifies starting in 2023, the survival status of auto dealers is getting worse and worse. this has gradually evolved from a challenge for dealer groups themselves to a concern for the entire industry.

based on the survey results, xing haitao believes that the current trend of highly involutionary auto market is still continuing. for dealers, the most serious challenges at present come from two aspects. one is the unreasonable business policies of automakers, and the other is the difficulty and high cost of financing.