Core Viewpoint - The automotive industry in the Yangtze River Delta is facing significant operational challenges, prompting four major associations to call for a new collaborative mechanism with manufacturers to address these issues and enhance market competitiveness [1][3][8]. Group 1: Current Challenges Faced by Dealers - Dealers are experiencing high operational pressure due to excessive inventory, disordered market competition, and increasing risks of cash flow crises [2][3]. - The inventory warning index for Chinese automotive dealers reached 56.6% in June 2025, indicating a rise of 3.9 percentage points, suggesting a decline in industry prosperity [4][5]. - A survey revealed that only 27.5% of 4S stores met or exceeded their sales targets in the first half of the year, highlighting significant inventory accumulation risks [5]. Group 2: Recommendations for Improvement - Establish a production-sales coordination mechanism to allow dealers to report reasonable inventory limits and eliminate rigid sales targets [7][8]. - Optimize rebate pricing policies by simplifying rules, clarifying non-fixed rebate calculations, and shortening the rebate redemption period to within 30 days [7]. - Strengthen the awareness of shared risks by adjusting sales rhythms and assisting dealers in clearing unsold inventory [7]. Group 3: Industry Collaboration and Future Outlook - The associations advocate for a collaborative approach involving government guidance, industry cooperation, and manufacturer participation to create a sustainable automotive market ecosystem [8][9]. - The automotive market is expected to see a slight decline in demand in July due to various factors, including demand exhaustion and seasonal trends, despite ongoing efforts to boost sales through promotions and new vehicle launches [9].