Over Half of Auto Dealers Fail to Meet Sales Targets in Mid-2025, with 56% Reporting Losses

WealthCoffee · 2026-03-20T13:27:14+00:00

In 2025, China's automotive market sales grew, but dealers still face pressure from losses. The proportion of dealers completing sales targets declined to 44.3%, while the loss ratio rose to 55.7%, indicating that intense competition is leading to profitability challenges.

WealthCoffee

2026-03-20 13:27:14

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Caixin 2025, only 44.3% of car dealerships met their annual sales targets, a decrease of 3.9 percentage points year-on-year. Dealer profitability also worsened, with a loss ratio of 55.7%, up 14 percentage points from the previous year. On March 18, 2026, the China Automobile Dealers Association released the “National Car Dealer Survival Status Survey Report” (hereinafter referred to as the “Report”), revealing this information.

The domestic automotive market maintained rapid growth in 2025. According to the China Association of Automobile Manufacturers, total domestic sales of passenger vehicles reached 24.065 million units, a year-on-year increase of 6.4%. The overall market size growth contrasts with dealer profitability, indicating that dealers are forced to sell cars at a loss to stay competitive.

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