China’s vehicle inventory alert index rose in Sept, indicating higher inventory pressure on dealers
DATA VIEWS & ANALYSIS
China’s vehicle inventory alert index rose in Sept, indicating higher inventory pressure on dealers
DATA VIEWS & ANALYSIS

China’s vehicle inventory alert index rose in Sept, indicating higher inventory pressure on dealers

 

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China’s vehicle inventory alert index (VIA), which reflects the inventory pressure on automobile dealers, rose to 55.2% in September, up 0.5 percentage point from the previous month and rising by 4.3 percentage points from a year earlier, according to the China Automobile Dealers Association (CADA).

The index remained above the warning threshold of 50%. A higher reading indicates weaker market demand, higher inventory pressure and greater risks. 

China’s auto market was in a traditional peak season in Sept., when the market demands were supposed to evidently recover, nevertheless, some cities faced losses on new vehicle sales due to resurgence of Covid cases in the first half of Sept, the association.

There were some tailwinds for auto sales recovery in the second half of Sept., including the sales promotion by automakers and dealers, the preferential policies by both central and local governments, the roll-out of new vehicle models, and the effect of the Mid-Autumn Festival and back-to-school season, it said.

In Sept., the VIAs of imported & luxury brands and Chinese indigenous brands reached 52.1% and 58.3%, respectively, sliding 0.9 and 0.4 percentage points over a month ago, respectively, according to the data. The index for mainstream joint-venture brands grew 2 percentage points month over month to 55.6%.