Is Elon's Empire Crumbling?

Jeff Brown - the legend who called Tesla and Nvidia early - says Elon is about to launch a $25T AI revolution. This isn't another chatbot. It's real-world AI that could 14X the impact of ChatGPT. But after October 23rd, it may be too late.

China's EV Transition Has Left Car Dealers Struggling To Make Profits Amid Price War, Overcapacity

Badar Shaikh
October 08, 2025

The Chinese domestic market's rapid transition towards all-electric mobility has left the country's dealership groups struggling to make profits amid a fierce price war in the sector.

Dealers Feeling The Strain

In a post on the Chinese social media platform WeChat on Tuesday, Cui Dongshu, the secretary general of China Passenger Car Association, shared that the rapid growth of new energy vehicles in the market was leading to overcapacity and fierce competition.

He urged authorities to offer more support for dealers in the form of funding and urged financial institutions to exercise flexibility with dealerships. Cui added that lofty targets have led to dealers offering steep discounts, which have eaten into profits.

"The double pressure of sluggish consumption and wholesale volume of manufacturers makes dealers maintain high inventories, in order to reduce capital pressure and financing costs, dealers are forced to sell low prices for survival," Cui said in the post. He also took aim at the country's ongoing EV Price War.

Dealers have added companies like Xiaomi Corp (OTC:XIACF) (OTC:XIACY) as well as Li Auto Inc. (NASDAQ:LI) to their portfolios, but it could take some time for them to see profits, Cui said.

Authorities Adopt Anti-False Marketing Measures, BYD Dealers Shut Doors

The news comes as the Chinese government recently announced it was adopting measures to curb fraudulent activities and false marketing in the domestic auto sector by launching a three-month campaign. The campaign would target behaviors such as false advertising, illegal profit-making and malicious defamation.

Meanwhile, Qiancheng Holdings, a BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF) dealer, closed down 20 dealerships it operated in China's Shandong province, citing changes to the automaker's dealership policies affecting the company's cash flow earlier this year.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Read Next:

  • UK Becomes Tesla Rival BYD’s Largest International Market Amid Europe Expansion

Disclaimer: The original source is in Chinese and the quotes have been translated into English

Photo Courtesy: Natee Meepian On Shutterstock.com

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