BYD Dealer Failure in China: Shandong Province Store Closures
A significant dealer of Chinese electric vehicle maker BYD in the eastern province of Shandong has reportedly gone out of business, with multiple stores found deserted or closed.
Details of the Closure
According to the Jinan Times, Qiancheng Holdings, which operated the BYD stores, is experiencing financial difficulties. This has affected over 1,000 consumers who are still owed warranty coverage and after-sales services. The impacted stores are located across four cities, including Jinan and Weifang.
Consumer Response
Car owners are organizing rights protection groups to seek solutions to the disruption of services.
Reasons for the Failure
Qiancheng claims that adjustments BYD made to its dealer policy caused tremendous pressure on its cash flow. However, BYD suggests that Qiancheng's rapid expansion is the primary cause of the crisis and is offering support.
Wider Market Implications
This situation underscores the growing stress within China's auto market due to increasing competition. This impacts suppliers, automakers, and dealerships, particularly amid a shift towards direct sales and a slowdown in consumer spending.