In 2022, Runhua Group was a well-known automobile dealer in China with a large market share in the traditional fuel vehicle market. The recent surge of new energy (i.e., plug-in electric) vehicles was having a strong impact on the company’s main business. The high number of new automobile companies entering this promising market was threatening the dealership model, the traditional sales and distribution channel that dominated the market. Runhua Group had always held a long-term vision and a cautious attitude. However, it had to make a decision on how to respond to the subversive changes in the automotive industry in a timely manner. What should be the company’s strategy for the new energy vehicle business? How should it select which new energy brands to partner with?

In 2022, Runhua Group was a well-known automobile dealer in China with a large market share in the traditional fuel vehicle market. The recent surge of new energy (i.e., plug-in electric) vehicles was having a strong impact on the company's main business. The high number of new automobile companies entering this promising market was threatening the dealership model, the traditional sales and distribution channel that dominated the market. Runhua Group had always held a long-term vision and a cautious attitude. However, it had to make a decision on how to respond to the subversive changes in the automotive industry in a timely manner. What should be the company's strategy for the new energy vehicle business? How should it select which new energy brands to partner with?