China’s auto dealer inventory warning index up slightly in Oct from Sept

China’s auto dealer inventory warning index up slightly in Oct from Sept

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China’s auto dealer inventory warning index stood at 54.1 percent in October, 0.1 percentage point higher than the 54.0 percent recorded in September, while 8.3 percentage points lower than the same month of the previous year, as announced by the China Automobile Dealers Association (CADA).

According to CADA, since October was another month in the traditional peak season for business, the auto market performed well amid the stimulus measures implemented by auto producers. However, it was the autumn harvest season in northern China, which negatively affected rural consumers’ willingness to buy cars. At the same time, there were sporadic Covid-19 cases in some regions of China, which also exerted a negative impact on the auto market.

As the end of the year is approaching, auto dealers will come under stronger pressure from inventories as car producers will require them to build up more stocks. Auto dealers may implement further sales promotion activities, reducing sales prices of vehicles, which will limit their profit margins. 

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