Chinese dealers are choosing domestic electric vehicles over foreign-branded petrol cars

Chinese Dealers Shift Focus to EVs, Ditching Foreign Brands Slow to Adapt

In a bold move reflecting China’s shift towards greener vehicles, Chinese car dealers are rapidly replacing foreign brands with homegrown electric vehicle (EV) makers. The transition is evident at Yongda Auto, China’s fourth-largest dealer chain, which recently converted two dealerships into “Zeekr Houses” to showcase premium EVs produced by Zeekr, a sub-brand of Geely.

The decision to ditch models from foreign brands like Infiniti and Roewe comes as Chinese dealers witness declining profitability and sales figures for traditional internal combustion engine (ICE) cars. Sun Tianya, general manager of Yongda’s EV unit, emphasized the need to adapt to the changing market landscape by focusing on promising EV brands.

Similarly, Haipeng Group, another regional dealer chain, has been revamping its brand portfolio to include more local EV brands, leading to a significant drop in profits from ICE car sales but a substantial increase in EV revenues.

The trend is further supported by data from the China Automobile Dealers Association, which shows a decline in ICE car dealerships and a rise in EV dealerships. As Chinese dealers face pressure to align with the country’s push towards EVs, partnerships between EV makers like Nio and dealers are becoming more common to expand sales networks.

Ultimately, the shift towards EVs in China is reshaping the automotive industry, with dealers adapting their business models to cater to the growing demand for greener vehicles. As the market continues to evolve, the collaboration between EV makers and dealers is expected to play a crucial role in driving sales and ensuring a sustainable future for the industry.