China’s auto dealer inventory warning index stood at 54.2 percent in May, 4.6 percentage points lower than the 56.8 percent recorded in April, as announced by the China Automobile Dealers Association (CADA). Better demand and a decrease from the high levels of inventories seen in April led to some improvement in sentiment in May.
According to CADA, Covid-19 has had a severe impact in northern China, exerting a negative influence on the auto market there and contributing to the overall high level of the inventory warning index.