China’s auto dealer inventory warning index stood at 62.4 percent in October, up 3.8 percentage points compared to September, while decreasing by 4.5 percentage points year on year, as announced by the China Automobile Dealers Association (CADA).
According to CADA, in September car exhibitions in various regions in China and advertising campaigns boosted demand from downstream users, and was followed by a relative slackening of demand in October. In addition, during the National Day holiday (October 1-7), buyers were less active in purchasing vehicles, while in rural areas car purchases declined due to the busy farming season.
More car exhibitions are anticipated in November and greater promotional activities for car sales are expected as the end of the year approaches, and so many consumers postponed their decisions on car purchases during the month of October.