BMW dealership terminated in China as legacy automakers face major challenges

The BMW dealership has terminated its brand authorization and ceased operations in China, leaving car owners worried about their after-sales rights. Such business termination has become frequent among legacy car brands lately.

According to Mydrivers, the Dayou Baolong BMW dealership in Jinan, Shangdong Province, ceased operations in China with its brand signs removed and office equipment emptied. At press time, a few display cars remained in the showroom, waiting to be moved.

Interestingly, no business notices have been posted. However, staff confirmed that the dealer was terminated due to poor sales and the expiration of the lease. According to the source, nearby businesses highlighted that the BMW store’s activity suddenly declined, leading to an abrupt closure.

Many car owners were concerned by the termination of the dealer, as they still hold maintenance packages and extended warranties, purchased in a store that had recently ceased operations. However, it was reported that the dealer’s business was merged into the Dayou Baolong main store, which will provide normal use of maintenance packages and extended warranties.

BMW China also informed car owners that the original factory warranty and service package can be used at any authorized BMW dealership across China.

This closure isn’t an isolated case in China. Last year, the number of BMW dealerships here decreased by 8.2%, with over 50 stores closing or having their authorization revoked. BMW officials claimed that they are currently optimizing their sales network. However, it is a more complicated problem.

In 2025, BMW sold approximately 625,500 units of BMW and Mini cars in China. It is a year-on-year decrease of 12.5%, with sales falling back to the 2018 level. Previously, CarNewsChina reported that Audi, Porsche, and Mercedes-Benz dealers had similar issues due to harsh competition, official retail guidance cuts, and lower margins.