Core Insights - The luxury car market in China is undergoing a significant transformation, with traditional luxury brands losing market share to new domestic electric vehicle (EV) brands, particularly in the context of the growing penetration of new energy vehicles (NEVs) [1][4][16] - The shift towards new luxury brands is driven by changing consumer preferences and the competitive pricing of NEVs, leading traditional luxury car dealers to adapt their strategies [2][5][11] Industry Trends - By 2025, the penetration rate of domestic brands in the NEV market is expected to exceed 70%, while traditional fuel vehicles are experiencing a decline in market share [1] - Over 100 traditional luxury brand dealerships have transitioned to selling domestic NEVs since 2024, with Tengshi Automotive being a notable beneficiary of this trend [1][4] - The number of independent NEV dealerships has increased to 7,770, accounting for 24% of the market, indicating a shift in dealership dynamics [2] Dealer Challenges and Opportunities - The number of traditional luxury car dealerships is expected to decrease significantly, with around 4,000 dealerships projected to close by the end of 2024, double the previous year's figures [2][4] - Traditional luxury car dealers are facing challenges such as inventory issues, declining profitability, and increased competition from NEVs, leading to a need for transformation [2][4][5] - Dealers that successfully pivot to new luxury brands like Tengshi may find opportunities for higher profit margins and improved brand image [4][5] Tengshi Automotive's Position - Tengshi Automotive has adopted a "direct sales + dealership" dual-channel model, which has attracted numerous traditional luxury car dealers to join its network [6][10] - The company has rapidly expanded its presence, with nearly 500 stores across 200 cities, and has achieved significant sales growth supported by strong supply chain capabilities [10][11] - Tengshi's focus on self-developed technologies and a diverse product lineup has positioned it as a leader in the high-end NEV market, appealing to both consumers and traditional dealers [11][15] Future Outlook - Tengshi is expected to continue leading the charge in the high-end NEV sector, leveraging its innovative product offerings and expanding its market presence both domestically and internationally [16] - The brand's commitment to technology and luxury is anticipated to redefine consumer perceptions of luxury vehicles in China, establishing it as a key player in the global automotive landscape [16]