New CADA report reveals March inventory levels reaching new highs

The China Automobile Dealers Association released the Vehicle Inventory Index earlier this month, chinanews.com reported today. According to the VIA, March’s inventory warning level was a 67.5 percent, up 16.6 percent points from the previous month and well above safe levels. With the Shanghai Auto Show on the way, the market is expected to improve in April, helping improve the situation of dealerships.

With inventory levels growing, dealerships have been suffering. March’s high inventory rating of 68.2 percent (up 30.9 points from the previous month) has been attributed to decreasing demand (30.1 percent, down 7.7 percent from the previous month) and falling sales ratings (29.1 percent, down 10.6 percent), as well as holidays continuing from the previous month. On top of that, manufacturers have been supplying more vehicles to dealerships, further raising inventory levels.