KUALA LUMPUR: A major BYD car dealer in eastern China, Qiancheng Holdings, has gone out of business, with more than 20 outlets in cities like Jinan and Weifang shuttered, according to state-owned Jinan Times. The closure has affected over 1,000 customers who are still owed warranty and after-sales support.
Qiancheng, which once recorded an annual turnover of ¥3 billion and employed 1,200 staff, cited recent dealer policy changes by BYD as a key factor in a letter dated 17 April, stating the adjustments severely strained its cash flow. However, BYD attributed the collapse to Qiancheng’s aggressive expansion strategy, while affirming it is providing support to the dealer.
The development underscores rising pressures in China’s competitive EV market, where shifting consumer demand, tighter margins, and a pivot towards direct selling are squeezing traditional dealerships.
