Recently, news about the “financial problems of the Jiangsu Branch of BYD (362.880, -9.53, -2.56%) and Jinan Gancheng Automobile Trading Co., Ltd., a BYD dealer group in Shandong Province” has caught the industry’s eye.
Previously, in the “Solution for Handling Three Guarantees Services” announcement released by Jinan Gancheng on April 17th, it was stated that “In the past two years, due to the adjustment of BYD dealer policies, our cash flow management has been under great pressure. Additionally, multiple car dealers in Shandong Province suffered loan defaults, and the local bank financing policies were conservative, making it even more difficult for us to obtain financing. A series of such impacts led to a huge challenge for our store operating funds, and we were unable to promptly handle the refund of three guarantees to our customers and friends.” This statement seemed to point to external factors as the cause of its financial difficulties.
BYD’s Exclusive Response to Caipin News
However, on May 28th, a relevant person from the Brand and Public Relations Department of BYD Group made an exclusive response to Caipin News on this matter: “The information circulating online is not true! Over the past few years, our policies towards dealers have been continuous and stable. It is understood that this dealer group, due to its blind and rapid expansion and leveraged operation, has encountered problems with its capital chain. Since the end of last year, some of the 4S stores of this dealer group have been acquired by other local dealers. We are providing relief support to this dealer group and assisting it in properly handling the related issues of its customers and employees.”
Profound Transformation in the Automotive Industry
In fact, the current automotive industry is undergoing a profound transformation. In recent years, the waves of new energy and intelligence have swept across the market, strongly impacting the traditional automotive sector. Brands like Suzuki and Mitsubishi have successively announced their withdrawal from the Chinese market, and automakers such as Weyma, Arix, Tianji, and Baixin have also fallen into bankruptcy one after another. The withdrawal of OEMs, combined with the improper business strategies of some dealers, has led to financial strain for many domestic automotive dealers.
The “China Automotive Distribution Industry Development Report (2024 – 2025)” released by the China Automobile Distribution Association shows that by the end of 2024, the total number of 4S stores across the country was 32,878, a decrease of 4,419 compared to the previous year, representing a decline of 2.7%. This is the first negative growth since 2021, clearly demonstrating the challenges faced by the industry.
BYD Sets an Example with Responsible Attitude
In the context of frequent occurrences of host factory bankruptcies and dealer bankruptcies, consumers and employees often become the most direct victims. Over the past few years, many car brand dealers who ran away due to a broken capital chain left behind issues regarding customer rights protection and employee resettlement that were ignored. Most manufacturers also did not actively respond or handle the aftermath.
However, this time, BYD took the initiative to step forward, actively helping dealers to alleviate their difficulties, and fully addressing the issues of customers and employees. This responsible attitude undoubtedly sets a good example for the industry and is worthy of recognition and learning from.
Related topics：
