China’s auto dealer inventory warning index stood at 52.2 percent in February this year, 7.9 percentage points lower compared to that recorded in January, while 29 percentage points lower than in the same month of last year, as announced by the China Automobile Dealers Association (CADA).
According to CADA, the inventory warning index has declined significantly in February, which saw the second lowest level since January 2019, though remaining above 50.0 percent for the 38th consecutive month.
The rapid decline in the inventory warning index was due to the continuing improvement of demand in the vehicle market and the low base in the same period last year.
“The stimulus policy and downstream consumers’ willingness to buy vehicles to ensure safety amid the Covid-19 pandemic will exert a positive impact on the vehicle market,” said Xiao Zhengsan, vice president of CADA. He also said he thought demand for vehicles will improve further in March, which will likely drag down the inventory warning index.