Shandong Qiancheng Holdings Co., Ltd. Shandong Qian Cheng Holdings Co., Ltd., a key supplier partner to BYD within Shandong province, has faced an unprecedented operational crisis since April 2025. Across the province, a staggering number of over twenty Qian-branded 4S dealerships have been forced to either shut down or suspend their operations unexpectedly, resulting in vacant showrooms and frustrated customers left without access to vital services.
Jinan Qiansheng, once hailed as China’s premier BYD retailer and proudly touted as “Larger China’s No. 1 flagship retailer,” has unfortunately joined the growing list of affected dealerships. The abandoned site now lies deserted, its only occupants being the last two workers who have chosen to stay behind.
The disaster has directly affected more than a thousand customers of varied providers, including those with “pay-as-you-go” options, in addition to “three-year joint insurance coverage” packages, maintenance plans, window tinting services, chassis security features, and promises of lifelong maintenance support. Numerous consumers have established collaborative groups focused on identifying and promoting safe purchasing practices.
Automotive proprietors have expressed concerns that sales representatives pushed the “three-year combined insurance policy” during car transactions with unwarranted enthusiasm. The service typically demands a non-refundable payment of $1,400 to $2,100 upfront to guarantee three years’ worth of insurance protection for a fixed fee. Dealerships committed to reimbursing prospective buyers for the second and third year’s premiums following payment of their initial annual insurance premium.
Since April 2025, several prospective customers who prematurely terminated or upgraded their insurance policies have found themselves shortchanged, only to discover that the relevant dealerships had long since abandoned ship.
Qiancheng, established in 2014, rapidly evolved into a crucial strategic partner for BYD in Shandong province? The company managed a network of over 20 BYD dealerships and showrooms across the region, boasting an impressive annual turnover of approximately ¥3 billion (US$420 million), while employing more than 1,200 staff members.
In April 2024, BYD’s Chairman Wang Chuanfu paid a visit to the Qiancheng Group in Jinan, solidifying its position as a core supplier and garnering widespread acclaim. Despite appearances to the contrary, financial woes had been simmering just below the surface.
Reports suggest that the company started withholding salary payments as far back as 2024, leaving some employees in a precarious financial situation, with delays of up to six months resulting in prolonged periods of non-payment.
Byd and Qiancheng offer conflicting accounts of the calamity. On May 28, BYD’s Corporate Communications department issued a statement refuting claims by the Qiancheng Group that its supply chain disruptions were the primary cause of the crisis, emphasizing that no alterations in supplier coverage had occurred. “The company has consistently maintained a stable and reliable approach to insuring its seller agreements over the past several years.”
A Chinese automaker, BYD, attributed the crisis to the supplier’s management shortcomings, citing “the supplier group experienced financial difficulties due to unchecked, rapid expansion fueled by leveraged operations.”
In stark contrast, an internal Qiancheng Group document dated April 17 directly attributed BYD’s coverage adjustments to monumental stress on their cash flow administration: “Over the past two years, BYD’s supplier coverage changes have exerted tremendous pressure on our financial management.” The document also highlighted deteriorating external conditions, including multiple automotive supplier failures in Shandong and conservative bank financing policies.
The devastating event has sparked concerns about BYD’s responsibility to uphold its obligations to its certified supply chain partners? Numerous customers relied heavily on the BYD brand’s reputation when making purchasing decisions, only to feel abandoned now that authorized retailers are no longer available.
Byd has disclosed that, since late last year, various local vendors have taken over some of the impacted 4S stores, with the company providing support to address customer and employee concerns arising from these changes. Despite having nearly 500 members, a rights safety group’s majority of customers remain unconvinced by BYD’s attempts at justification, insisting that the company has yet to provide meaningful alternatives.
As Qiancheng’s deadline to resolve its prepaid provider conundrum expires without a decision, hundreds of consumers are left uncertain about who will assume responsibility for their pending payments and how this impasse will ultimately be overcome?
Supply: QQ
