Finance
Big BYD dealer in eastern China goes out of business, local media reports
Published by Global Banking & Finance Review®
Posted on May 29, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on May 29, 2025
2 min readLast updated: January 23, 2026
A major BYD dealer in Shandong closes stores, affecting over 1,000 consumers. The crisis highlights challenges in China's auto market.
SHANGHAI (Reuters) -A large dealer of Chinese electric vehicle maker BYD's cars in the eastern province of Shandong has gone out of business with at least 20 of its stores found to be deserted or shut, government-owned media reported.
The Jinan Times, which is owned by the government of the provincial capital of Jinan, reported on Wednesday that Qiancheng Holdings, which ran BYD stores, had fallen into difficulties, affecting more than 1,000 consumers who were still owed warranty coverage and after-sales services.
The affected stores are spread across four cities, including Jinan and Weifang, the newspaper said, citing visits it had made. Car owners were organising rights protection groups to seek solutions, it added.
The newspaper said Qiancheng, which once had an annual turnover of 3 billion yuan ($416.71 million) and employed 1,200 people, published a letter on April 17 blaming adjustments BYD had made to its dealer policy for putting its cash flow under tremendous pressure.
Qiancheng did not immediately respond to a request for comment from Reuters on Thursday.
Asked for comment, BYD referred Reuters to a Wednesday article by Chinese media outlet Cover News that cited an unnamed BYD public relations representative as saying that it was Qiancheng's rapid expansion, rather than its policy adjustments, that had led to its crisis.
The representative added that BYD was providing support to Qiancheng.
Qiancheng's situation highlights the growing stress facing China's auto market, the world's largest, as intensifying competition puts pressure on suppliers, automakers and dealers.
Car dealerships have been particularly vulnerable to a shift in the industry towards direct selling and a slowdown in consumer spending. BYD has a small number of its own stores in China, but mostly uses dealers in that market.
($1 = 7.1993 Chinese yuan renminbi)
(Reporting by Brenda Goh; Editing by Jamie Freed)
A large dealer of BYD's cars, Qiancheng Holdings, has gone out of business, with at least 20 of its stores reported as deserted or shut.
Qiancheng Holdings cited adjustments made by BYD and its rapid expansion as factors contributing to its difficulties.
Qiancheng Holdings employed approximately 1,200 people at its peak.
The auto market in China is facing growing stress due to intensifying competition, which is putting pressure on suppliers, automakers, and dealers.
BYD has stated that it is providing support to Qiancheng Holdings during this challenging time.
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