China’s auto dealer inventory warning index stood at 61.0 percent in April, up 5.7 percentage point compared to March, while up 6.47 percentage point year on year, as announced by the China Automobile Dealers Association (CADA). April is the 16th successive month in which the auto dealer inventory warning index has exceeded 50.0 percent.
Although the 18th Shanghai International Automobile Industry Exhibition stimulated demand from downstream users, demand in April has still slowed down, resulting in reduced sales volumes in the given month. Since the sixth phase of implementation of national standards for the discharge of pollutants from motor vehicles will begin as of July 1 this year, auto sales are expected to come under strong pressure in May.