Jakarta. BYD Motor Indonesia has assured that the recent closure of 20 BYD dealerships in China’s Shandong province will not impact its operations in Indonesia, dismissing the issue as an isolated case linked to the financial troubles of a local Chinese partner.

Luther Panjaitan, Head of Public and Government Relations at BYD Motor Indonesia, said the closures were the result of internal financial difficulties at Qiancheng and had no direct connection with BYD as the automaker’s principal.

“The closure of the dealership group was purely due to financial issues on Qiancheng’s side and is not directly related to BYD,” Luther said on Tuesday.

According to Luther, BYD currently operates more than 4,000 active dealerships across China, and the Shandong closures are not representative of the company’s broader network performance.

Luther also highlighted BYD’s continued positive global sales performance. In May 2025, BYD recorded sales of 382,476 vehicles, a 0.63 percent increase from April and a 15.27 percent year-on-year rise.

“This growth indicates that the Shandong incident has had no significant impact on BYD’s overall business performance,” he said.

The 20 shuttered dealerships in question were part of Qiancheng Holdings’ 4S network (Sales, Service, Spare parts, and Survey), a key partner of BYD in Shandong. The closures began in April 2025 following a severe operational crisis.

According to CarNewsChina, the situation led to showrooms in the region halting the display of BYD products and affected more than 1,000 customers awaiting after-sales services and vehicle warranties.

In response, BYD stated it has taken steps to address the issue. Some dealerships in the affected region have been taken over by the automaker directly to ensure consumer rights and employee welfare are preserved.

“We regret what has happened to our partner, but we assure the public that this situation has no impact on our marketing, sales, or after-sales operations in Indonesia,” Luther said.

Qiancheng was founded in 2014 and once served as a major BYD partner in Shandong, managing over 20 dealerships and showrooms. At its peak, the company claimed annual sales of up to 3 billion yuan (around US$420 million) and employed more than 1,200 staff.

In April 2024, BYD Chairman Wang Chuanfu even visited Qiancheng’s headquarters in Jinan, signaling strong ties at the time. However, signs of financial trouble within the company reportedly began surfacing in the months that followed.