The average profit at China’s new-vehicle dealerships surged 20 percent in 2020 even though revenue fell amid the pandemic, according to a survey conducted by J.D. Power.
The growth in profits came after automakers cut sales targets and raised incentives for dealers in the wake of the coronavirus outbreak, Power said this month.
New-vehicle dealers reported an average profit of 2.74 million yuan ($422,840), up from 2.28 million yuan in 2019.
The percentage of dealers who earned a profit or broke even increased by 6 percentage points from a year earlier.
By contrast, due to the outbreak, the average number of monthly after-sales visits for service and the number of service customers dropped 9 percent and 16 percent, respectively, in 2020.
As a result, average dealer revenue contracted for the fourth straight year, slumping 12 percent to 154 million yuan last year, Power said, without disclosing further data from the survey.