In the first half of the year, over half of China’s car dealerships faced financial losses, primarily due to a fierce price war in the automotive industry that led to a severe price inversion, where retail prices fell below wholesale costs. According to the China Automobile Dealers Association, 50.8% of dealerships reported losses, a 7.3% increase from the previous year, while only 35.4% were profitable. To alleviate financial pressures, some automakers provided upfront rebates to dealers, helping to mitigate losses. Despite this, only 28.8% of dealerships met their sales targets, often at the expense of profitability. Overseas luxury brand dealers fared better, with over 40% achieving their sales goals, while joint venture automakers struggled, with just 20.8% reaching their targets.