Core Insights - In 2024, domestic car dealers generally achieved or approached their annual sales targets, with a trend of narrowing losses, leading to an overall satisfaction score of 75.6, an increase of 3.3 points from 2023 [2][12] - The survey conducted by the China Automobile Dealers Association indicates a discrepancy between the perceived survival status of car dealers and the actual data, highlighting the challenges faced in a competitive market [2][3] Sales Performance - The retail volume of passenger cars in China reached 22.892 million units in 2024, a year-on-year increase of 5.5% [2] - 48.2% of dealers exceeded their annual targets, a significant increase from less than 30% in 2023, while 30% achieved 80%-100% of their targets [3] - The proportion of dealers reporting losses decreased from 43.5% in 2023 to 41.7% in 2024, with a notable reduction from 50.8% in the first half of 2024 [6] Operational Adjustments - The average number of employees per 4S store decreased from 64 in 2023 to 58 in 2024, with a notable increase in the proportion of after-sales personnel [3] - Dealers are adapting to market challenges by transforming their operations, reducing costs, and extending after-sales services [3] Financial Performance - The profitability ratio of dealers in 2024 was 39.3%, with 19% breaking even and 41.7% reporting losses [6] - The profit share from financial and insurance services increased significantly from 24.7% in 2023 to 38% in 2024, while new car sales profits faced downward pressure due to price wars [7][8] Market Dynamics - Approximately 85% of dealers reported experiencing price inversion, with 60.4% indicating a price inversion of over 15% [17] - The independent brand dealers in the new energy vehicle sector showed a better profitability ratio, with 50% reporting profits compared to the overall dealer landscape [12] Manufacturer Support - Manufacturers are providing support to dealers through subsidies, relaxed sales targets, and reduced assessments to alleviate operational pressures [9][12] - The satisfaction of dealers with new and used car business remains low due to high targets and insufficient support from manufacturers [16] Future Outlook - Over half of the dealers remain optimistic about the growth of the passenger car retail market in 2025, while 26.4% expect stability and less than 25% foresee a decline [16]