Everybody wants to talk about China’s affordable EVs. Less attention goes to what that price war is doing to the retail side. In 2025, 56% of China’s dealerships lost money. 82% sold new cars below cost. Average new-car gross margin fell to negative 26%. F&I got tighter too. The only real bright spot was fixed ops, where margins climbed to 81%. That is the tradeoff. Cheap metal can win headlines. It can also wreck the people expected to sell it. Turns out “just lower the price” looks a lot different when the dealership is the one absorbing the hit. Watch the full episode at the link in our bio.