Xiao Zhengsan, of the China Automobile Dealers Association, stated that efforts will be accelerated to develop industry standard documents for the exit clauses of dealer authorization contracts.

Xiao Zhengsan, president of the China Automobile Dealers Association, stated at the 2025 annual conference of the Chinese automobile distribution industry that at present, dealers of luxury, joint venture, and independent brands generally have problems such as unreasonable network layout, insufficient profitability, and tense manufacturer relationships. Overall, they are in a state of minimal profit or even loss. The fundamental reason is the imbalance in supply and demand, leading to excessive network density, high inventory, and inverted pricing in sales and purchases. In response, the China Automobile Dealers Association has conducted extensive research on exit mechanisms under the guidance of relevant departments, and will accelerate the promotion of standardized industry documents for brand dealer authorization contracts in the next phase, as well as expedite the development of industry standards for exit clauses in authorization contracts.