Core Insights - The report indicates a decline in the number of automotive 4S stores in China, with a total of 32,878 stores by the end of 2024, marking a 2.7% decrease compared to the previous year, the first contraction in four years [1][3] Group 1: Market Dynamics - The intense price competition in the automotive market last year led to increased competition among same-brand dealerships, resulting in the closure of some stores [3] - The contraction in the 4S network is primarily observed in non-new energy brands, while new energy brands continue to grow [3] Group 2: Brand Performance - The 4S network for domestic brands expanded to 21,144 stores in 2024, reflecting a 1.7% year-on-year increase [3] - In contrast, the network for joint venture brands decreased by 13.5% to 7,744 stores, and luxury brands saw a 1.4% decline to 3,990 stores [3] Group 3: New Store Openings - In 2024, a total of 3,518 new 4S stores were added, with approximately 57% belonging to new energy brands [4] - Domestic brands accounted for 92% of the new store openings, while joint venture and luxury brands contributed only 3% and 5%, respectively [4] Group 4: Store Closures - Among the 4,419 4S stores that closed in 2024, domestic brands represented a significant portion at about 65%, with joint venture brands at 29% and luxury brands at 6% [6] - The majority of the closed stores, approximately 93%, were traditional fuel vehicle brands, indicating a shift in the market dynamics [6]