China’s auto dealer inventory warning index stood at 62.2 percent in July, up 11.8 percentage points compared to June, while declining by 8.8 percentage points year on year, as announced by the China Automobile Dealers Association (CADA). July is the 19th successive month during which the auto dealer inventory warning index has exceeded 50.0 percent.
According to CADA, due to previous moves in China to introduce new stricter vehicle emissions standards as of the start of July, vehicle sales increased in advance, resulting in lower vehicle sales volumes in July.
Furthermore, CADA predicted that inventory levels in August will also be high as consumers in southern China will be reluctant to buy auto vehicles because of the Hungry Ghost Festival (August 15).