The China Auto Dealer Inventory Warning Index stood at 54.4 percent in July this year, up 2.1 percentage points year on year, while rising by 4.9 percentage points month on month, as announced by the China Automobile Dealers Association.
The official policy of halving the vehicle purchase tax took effect as of the beginning of June, exerting a positive impact on the auto industry in June. However, the preferential policy in 30 percent of regions and provinces ended by the end of June, while the hot weather and the Covid-19 pandemic negatively affected the auto industry in July. It is estimated that sales of passenger vehicles in China will amount to 1.65 million units in July, with the year-on-year growth declining from June.