China’s auto dealer inventory warning index stood at 59.4 percent in August this year, down 2.8 percentage points compared to July, while rising by 7.2 percentage points year on year, as announced by the China Automobile Dealers Association (CADA). August is the 20th successive month during which the auto dealer inventory warning index has exceeded 50.0 percent.
According to CADA, due to previous destocking sales ahead of the introduction of new stricter vehicle emissions standards, vehicle sales volumes have been lower in the past two months. Moreover, the Hungry Ghost Festival (August 15) also negatively affected vehicle purchases in August.
In September, there will be motor show in Shanghai, which will likely stimulate the sales of vehicles.