Market Turbulence: BYD Dealer Shutters Amidst Auto Industry Shakeup

Qiancheng Holdings, a key distributor of BYD electric vehicles in Shandong, China, has shuttered 20 of its outlets, as reported by the government-owned Jinan Times. The closures have left over 1,000 customers without warranty and after-sales services, reflecting a significant disruption in the region's auto market.

Originally boasting an annual turnover of 3 billion yuan and employing 1,200 people, Qiancheng blamed BYD's dealer policy adjustments for cash flow issues in an April 17 letter. The affected stores span cities including Jinan and Weifang, with consumers now forming rights protection groups to address their grievances.

A BYD representative rebutted the claims of policy-induced financial strain, attributing Qiancheng's troubles to rapid expansion. This situation underscores mounting pressures in China's auto industry, as companies navigate intensifying competition and shifts toward direct selling.

(With inputs from agencies.)