Industry Overview - The Chinese domestic market is rapidly transitioning towards all-electric mobility, leading to challenges for dealership groups in maintaining profitability amid a fierce price war [1][2] - The growth of new energy vehicles has resulted in overcapacity and intense competition within the market [2] Dealer Challenges - Dealers are experiencing pressure from sluggish consumption and high wholesale volumes, forcing them to maintain high inventories and sell at low prices to survive [4] - The need for financial flexibility and support from authorities and financial institutions has been emphasized to help dealers cope with the current market conditions [3] Government Actions - The Chinese government has initiated a three-month campaign to combat fraudulent activities and false marketing in the auto sector, targeting behaviors such as false advertising and illegal profit-making [5] - Changes in dealership policies by automakers have led to significant impacts on cash flow, exemplified by Qiancheng Holdings closing 20 BYD dealerships in Shandong province [6]