According to the Zhuizhong Financial APP, car dealers who had consecutive two days of sharp rises have collectively stagnated today. As of the time of publication, Zhongsheng Hldg (00881) fell by 10.45%, closing at 16.96 Hong Kong dollars; Meidong Auto (01268) fell by 10.34%, closing at 2.6 Hong Kong dollars; Zhengtongauto (01728) fell by 5.84%, closing at 0.129 Hong Kong dollars; Yongda Auto (03669) fell by 4.19%, closing at 1.83 Hong Kong dollars.

On the news front, the China Automobile Dealers Association recently completed its election, with Xiao Zhengsan serving as the chairman. At the association's annual meeting, Xiao Zhengsan pointed out that in the first half of this year, over half of the domestic car dealers experienced losses, with increasing operational pressure. According to relevant statistics, the proportion of dealers experiencing losses in the first half of this year reached 50.8%, with a profit proportion of 35.4%. The losses have significantly widened compared to the same period last year, with a substantial reduction in the average store gross profit total compared to 2023. Among them, dealers facing pressure from price wars are facing severe losses in new car sales, with new car profit contribution at -26.5%.

It is worth mentioning that increasing involvement in the new energy autos field has become one of the key strategies for many dealers to break the current impasse. Zhongsheng Hldg recently announced that the company has signed a preliminary negotiation agreement with Chongqing Sokon Industry Group Stock, agreeing to further discuss the cooperation in distributing their new energy autos. According to data from the China Automobile Dealers Association, in 2023, the top 100 dealers collectively operated 555 stores, with new energy brands accounting for sixty percent, mainly cooperating with independent new energy brands such as BYD, GAC Aion, and others.