Chinese auto dealers’ inventory declined significantly in Jun to reasonable levels – industry association
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Chinese auto dealers’ inventory declined significantly in Jun to reasonable levels – industry association
DATA

Chinese auto dealers’ inventory declined significantly in Jun to reasonable levels – industry association

 

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The China Auto Dealer General Inventory Warning Index stood at 1.35 in June, sliding 22.4% from the previous month and down 0.7% from a year earlier, said the China Automobile Dealers Association, adding that auto dealers’ inventories are below warning levels. 

In breakdown, the inventory index for high-end luxury auto brands and imported auto brands stood at 0.87, sliding 35.6% from the previous month; that for joint-venture brands was 1.49%, down 23.2%; while that for Chinese domestic brands was 1.43%, down 14.9%, it said.

In June, China’s central and local governments stepped up measures to boost consumption, launched campaigns to boost new energy vehicle sales in rural areas and provided regions subsidies for car purchases, which helped further release of auto demand, said the association.

In addition, automakers and auto dealers also ramped up promotional campaigns in an effort to achieve their first-half sale target, which also boosted car sales in June, it said.

Given the combine effect of the government’s policy measures to boost consumption and carmakers’ promotional campaigns, auto dealers’ customer traffic and transactions have improved significantly and their inventories declined sharply to enter a reasonable range, the association said.

For July which is a traditional low season for the auto market, as policy measures for boosting auto spending in several local governments ended in June, carmakers’ promotions are expected to scale back and hot weather reduces consumer traffic at stores, car sales could decline slightly from June, it said.