Chinese automobile retailers need to accelerate digital transformation, expand into rural markets and explore overseas opportunities as vehicle sales come under pressure, automotive retailer Liu Rongxue said.
According to the China Association of Automobile Manufacturers, China produced 23.246 million vehicles and sold 23.271 million in the first nine months of 2026, both down 4.5 percent year-on-year.
Passenger vehicle production and sales reached 19.966 million and 19.96 million units, respectively, declining 6 percent and 6.1 percent from a year earlier.
Chen Shihua, deputy secretary-general of CAAM, said the automobile industry had maintained generally stable operations, with new energy vehicles continuing to grow while the market for conventional fuel-powered vehicles contracted. Policy support is expected to help sustain market momentum, although weak domestic demand and external uncertainties remain challenges, Chen told Xinhua.
Against this backdrop, Liu proposed four approaches for automobile dealers: accelerating digital transformation, expanding into rural markets, pursuing overseas growth and participating in industry exhibitions and conferences.
"The global automotive industry is undergoing a profound structural transformation, with its focus shifting from vehicle manufacturing toward digitalization, intelligent technologies and services," the 41-year-old said.
"Automotive distributors have to embrace digitalization. But the value of digital tools ultimately lies in improving the customer experience and internal operations, rather than serving as marketing gimmicks."
Liu graduated from Henan University of Science and Technology in July 2008 with a degree in vehicle engineering. In 2012, he participated in How Bosses Are Tempered, an entrepreneurship program launched by Dongfeng Nissan to select and train automotive retailers. He won the competition and secured the opportunity to operate a dealership in Henan province.
Liu said the traditional 4S dealership model — covering sales, spare parts, service and customer feedback — requires substantial investment in land, showrooms, equipment and vehicle inventories.
High staff turnover, difficulties in training employees and complex vehicle and parts inventories have also created challenges for automobile dealers, he said.
As mobile internet services, short-video platforms and livestreaming have gained popularity, Liu has promoted the digital transformation of dealership operations.
Drawing on more than a decade of experience in automotive retail, he led the development of Automotive Industry AI Livestreaming Operation Management App V1.0 to address operational challenges in livestreaming-based vehicle sales. The software received copyright registration in 2026.
The continued expansion of the NEV market is also prompting dealers to adjust their sales strategies. In the first nine months of 2026, China's NEV production and sales reached 12.483 million and 12.472 million units, respectively, up 11 percent and 11.1 percent year-on-year, according to CAAM.
Liu Bin, deputy head of the China Automotive Strategy and Policy Research Center, said China's NEV industry had moved beyond broad preferential policies and entered a new stage of "market-driven and autonomous growth", Xinhua reported.
Liu Rongxue participated in an NEV promotion campaign in Hubei province in October 2024, coordinating with local enterprises on sales activities.
From March to May that year, he also helped establish a policy research group under the Hubei Electric Vehicle Circulation Association. The group organized 12 lectures in eight major cities in the province, reaching more than 500 enterprises, according to Wang Kun, president of the association.
Liu Rongxue said industry associations could also help automobile companies connect with overseas market resources. He added that conventional industry exhibitions and conferences remained useful channels for exchanges and cooperation.
The changing market environment requires dealers to combine standardized operations, digital resource management and technology-enabled staff training, while ensuring that new tools produce tangible improvements in customer service and operating efficiency, he said.
Editor：Zhou Jinmiao
