Shandong Qiancheng Holdings Co., Ltd. (山东乾城控股有限公司), BYD‘s core supplier community in Shandong province, has been experiencing a extreme operational disaster since April 2025. Greater than twenty “Qian”-branded 4S dealerships throughout the province have abruptly closed or suspended operations, leaving showrooms empty and prospects with out service.
The once-prestigious Jinan Qiansheng retailer, beforehand celebrated as “Higher China’s No.1 flagship retailer of BYD, ” is among the many affected dealerships. It now stands just about empty, with solely two employees members remaining on web site.
The disaster has straight impacted over a thousand customers who had pay as you go for varied providers, together with “three-year joint insurance coverage” packages, upkeep plans, window tinting, chassis safety, and promised lifetime upkeep providers. Many shoppers have organised rights safety teams to hunt collective options.
A number of automobile homeowners report that gross sales employees aggressively promoted the “three-year joint insurance coverage” service throughout automobile purchases. This service sometimes requires an upfront fee of 10,000 to fifteen,000 yuan (1,400-2,100 USD) to cowl three years of insurance coverage. Dealerships promised to reimburse prospects for the second and third-year premiums after prospects paid their annual insurance coverage.
Since April 2025, quite a few prospects who superior their second—or third-year insurance coverage funds haven’t obtained their promised refunds, solely to find that the dealerships have been deserted.
In keeping with public information, Qiancheng was based in 2014 and quickly grew to become BYD’s core strategic companion in Shandong. The group operated over 20 BYD dealerships and showrooms throughout the area, as soon as claiming annual gross sales of three billion yuan (420 million USD) and using greater than 1,200 employees.
In April 2024, BYD Chairman Wang Chuanfu visited the Qiancheng Group in Jinan, which was extensively interpreted as the best recognition of their standing as a core supplier. Nonetheless, monetary troubles have been already brewing beneath the floor.
Former workers have alleged that the corporate had begun delaying wage funds as early as 2024, with some employees going unpaid for as much as six months.
BYD and Qiancheng supply contradictory explanations for the disaster. On Might 28, BYD’s Model and Public Relations Division responded to the Qiancheng Group’s “damaged capital chain” rumours, explicitly denying that supplier coverage changes contributed to the disaster. “Our insurance policies towards sellers have remained constant and steady over the previous few years,” the corporate said.
BYD attributed the disaster to the supplier’s administration points, claiming “the supplier group skilled funding issues attributable to blind, speedy enlargement with leveraged operations.”
In stark distinction, Qiancheng Group’s inner doc dated April 17 straight blamed BYD’s coverage adjustments: “Prior to now two years, BYD’s supplier coverage changes have positioned huge stress on our money stream administration.” The doc additionally cited deteriorating exterior circumstances, together with a number of automotive supplier failures in Shandong and conservative financial institution financing insurance policies.
The disaster has raised questions on BYD’s duty to watch its authorised supplier community. Many shoppers made buying choices based totally on belief within the BYD model, and really feel deserted now that the authorised sellers have disappeared.
BYD revealed that since late final 12 months, different native sellers have acquired a number of the affected 4S shops, and the corporate is offering help to assist tackle buyer and worker points. Nonetheless, most customers in a rights safety group with practically 500 members reject BYD’s rationalization, stating the corporate has failed to offer substantive options.
Because the end-of-Might deadline promised by Qiancheng passes with out decision, hundreds of shoppers are left questioning who will take duty for his or her pay as you go providers and the way this case will in the end be resolved.
Supply: QQ
