Chinese auto dealerships’ inventory enters into a reasonable range

Survey result on Chinese auto dealerships’ inventory, published by China Automobile Dealers Association (CADA) on October 18th, reveals that the Chinese auto dealerships’ comprehensive inventory coefficient reaches 1.13 in September, decreasing 6% with August and 28% with the same period of last year. The coefficient is continuously going down, which shows the inventory enters into a reasonable range.

Survey shows that the Chinese auto market into a traditional boom season in September, boosted by the launching of many new brands, autumn auto shows in some districts and oncoming ending date of preferential policies. In the meantime, road trips in October also promote the sales volume in September. Influenced by the above reasons, Chinese auto market has a good performance in September, with increasing sales volume. Auto dealerships’ inventory pressure decreases greatly, the coefficient of which enters into a reasonable range.

In the meantime, Chinese joint-venture brands, imported brands and self-independent brands also face decreasing inventory coefficients, lowering than the alert line. Joint-venture brands auto inventory coefficient is 1.06, decreasing 5%; imported brands auto inventory coefficient is 1.18, decreasing 13% with August. Self-independent brands auto inventory coefficient is 1.42, decreasing 1%.

Survey shows that all Chinese auto brands face an inventory depth lower than two months in September, and dealerships face less inventory pressure than previous time.

CADA points out that, the increasing auto shows will further boost the market demand in October. But it also suggests that, dealerships should give a rational evaluation on market demand and control inventory reasonably, to prevent the high inventory pressure and oncoming operation risks.