The China Auto Dealer General Inventory Index stood at 1.38 in January this year, up from 1.2 recorded in December last year, as announced by the China Automobile Dealers Association (CADA).
Demand from downstream users shrunk due to the Chinese New Year holiday in February. Meanwhile, a new round of subsidy policies has not been issued yet, resulting in the prevailing cautious sentiments among consumers.
In February, vehicle sales may decline significantly compared to January. CADA suggested distributors should exert reasonable control over inventory levels in February.