Eastern China-based BYD dealership closes down, according to local news outlets
SHANGHAI — A notable dealership of Chinese electric vehicle manufacturer BYD, operating in Shandong's eastern province, has allegedly ceased operations, with at least 20 of its showrooms reported empty or shut down according to local media reports.
The Jinan Times, a state-owned newspaper based in Jinan, the provincial capital, reported on Wednesday that Qiancheng Holdings, the entity behind the BYD dealerships, was grappling with financial difficulties, affecting over a thousand consumers who still await warranty coverage and post-sales services.
The affected showrooms span across four cities, including Jinan and Weifang, the newspaper stated, citing its own investigations. Car owners are reportedly organizing advocacy groups to explore potential solutions, it added.
Based on media visits, the newspaper revealed that Qiancheng had published a letter on April 17, attributing its financial strain to modifications BYD had made to its dealer policy, which placed significant pressure on its cash flow.
Qiancheng did not immediately respond to Reuters' request for comment on Thursday.
Separately, BYD announced the launch of its low-cost 'Dolphin Surf' electric vehicle in Europe. In response to queries, BYD referred Reuters to an article by Chinese media outlet Cover News, which cited an unnamed BYD public relations representative attributing Qiancheng's crisis to its rapid expansion, rather than policy adjustments. The representative also mentioned that BYD was offering support to Qiancheng.
The predicament of Qiancheng underscores the mounting stress facing China's auto market, the world's largest, as increased competition strains suppliers, automakers, and dealers. Car dealerships, in particular, have shown vulnerability to industry shifts toward direct selling and a dip in consumer spending. BYD maintains only a few company-owned stores in China, primarily relying on dealers to sell its vehicles in the local market.
(Enrichment Data: It is worth noting that available reports suggest Qiancheng Holdings operated approximately 20 showrooms in Shandong, with all alleged to have closed, according to sources like Autodealer. However, the precise reasons behind the dealership's closure remain unclear as of now.)
- The financial difficulties of Qiancheng Holdings, responsible for multiple BYD dealerships in Shandong, have led to the closure of at least 20 showrooms, according to local media reports.
- The shutdown of these dealerships, spanning four cities like Jinan and Weifang, has left over a thousand consumers without warranty coverage and post-sales services.
- To deal with this predicament, car owners are reportedly organizing advocacy groups to explore potential solutions.
- Despite the challenges faced by Qiancheng Holdings, BYD is expanding its business in the energy sector by launching low-cost electric vehicles in Europe, signifying the company's continued involvement in the automotive industry and finance.
