The car dealership industry is facing severe challenges. RecentlySpincasinonodepositbonusThe results released by several car dealers show that the whole industry is generally facing a situation of losses or declining profits. The pains of the transition period of the automobile industry, coupled with the impact of price war and other factors, make dealers have to look for a new profit model.

Industry challenges intensify the collapse of Yongao in Guangdong reflects the pressure on the survival of car dealers. According to the "Automobile Dealer Investor Survey report", more than 1/4 of the surveyed dealer groups failed to make a profit in 2023, and nearly half of the group's profits declined.

New energy vehicles become a bright spot although the overall performance is not good, but the new energy vehicle business has become a profit growth point for some dealers. Yongda's performance report shows that the sales volume and after-sales service revenue of new energy vehicles have increased significantly, and the gross profit margin of maintenance is the same as that of traditional fuel vehicles.

There is still potential in the used car market despite pressure on the used car business, data from Zhongsheng Group show that used car sales and after-sales service revenues continue to grow. In addition, the inventory level of car dealers has declined, indicating that a more favorable market environment may be ushered in.

New business exploration in order to improve living conditions, dealer groups are seeking profit growth from derivative businesses such as the aftermarket, the used car market and finance. Guanghui Baoxin and Harmony Automobile have achieved year-on-year growth of net profit by expanding the cooperation model of auto finance and improving the quality of operation.

Enterprise management and efficiency improvement in addition to business adjustment, car dealers can also tap growth potential through measures such as improving the digital capacity of stores and building regional capacity centers.