Although the agency predicts a good start in January this year, the business conditions of car dealers may still face challenges. According to data from the China Automobile Dealers Association, the inventory warning index for Chinese car dealers in December 2025 was 57.7%, up 7.5 percentage points year on year and 2.1 percentage points month on month. The inventory warning index is above the boom and bust line, and the prosperity of the automobile distribution industry has declined. According to a survey by the China Automobile Dealers Association, demand contracted due to reduced dealer customer traffic and heated market expectations, and new car sales profits narrowed, compounded by additional tasks from some manufacturers at the end of the year, increasing inventory backlog and financial constraints. Nearly half of dealers completed tasks of 90% or more for the full year of 2025. “There was no traditional market trend in December 2025, and the overall trend is still weak.” Fan Yu, Deputy Secretary General of the China Automobile Dealers Association's Coordinated Industry Development Working Committee, said at the monthly analysis meeting.

Although the agency predicts a good start in January this year, the business conditions of car dealers may still face challenges. According to data from the China Automobile Dealers Association, the inventory warning index for Chinese car dealers in December 2025 was 57.7%, up 7.5 percentage points year on year and 2.1 percentage points month on month. The inventory warning index is above the boom and bust line, and the prosperity of the automobile distribution industry has declined. According to a survey by the China Automobile Dealers Association, demand contracted due to reduced dealer customer traffic and heated market expectations, and new car sales profits narrowed, compounded by additional tasks from some manufacturers at the end of the year, increasing inventory backlog and financial constraints. Nearly half of dealers completed tasks of 90% or more for the full year of 2025. “There was no traditional market trend in December 2025, and the overall trend is still weak.” Fan Yu, Deputy Secretary General of the China Automobile Dealers Association's Coordinated Industry Development Working Committee, said at the monthly analysis meeting.