Shang Hai Zheng Quan Bao·2025-06-14 13:43Core Viewpoint - GAC Group has committed to ensuring the completion of dealer rebates within two months, responding to the China Automobile Dealers Association's initiative to promote healthy development in the automotive industry [2][5]. Group 1: GAC Group's Commitment - GAC Group announced that it will ensure the completion of dealer rebates within two months, supporting the healthy development of the automotive industry [5]. - The commitment includes five major vehicle brands under GAC: GAC Haobo, GAC Trumpchi, GAC Aion, GAC Honda, and GAC Toyota [2][5]. - GAC Group is one of the first automakers to respond to the China Automobile Dealers Association's call for promoting healthy industry development [2]. Group 2: Industry Context - The China Automobile Dealers Association has issued an initiative emphasizing confidence in high-quality development, activating domestic demand, resisting unhealthy competition, and ensuring compliance with quality and safety standards [5]. - Despite a record high in automotive production and sales in 2024, the overall profitability of automotive dealers remains low, with only 39.3% reporting profits [8][9]. - The report indicates that 84.4% of automotive dealers are experiencing price inversions, leading to liquidity issues and financial strain [9]. Group 3: Challenges Faced by Dealers - The automotive market is increasingly competitive, with manufacturers and dealers adopting "price for volume" strategies, resulting in a situation where increased sales do not translate to increased profits [9][10]. - The number of 4S stores has decreased for the first time since 2021, with 4,419 stores exiting the market in 2024 [8]. - Industry experts highlight that traditional dealers remain crucial for most automakers, despite the rise of direct sales models from new energy vehicle manufacturers [10].