China’s auto dealer inventory warning index stood at 56.1 percent in December last year, 0.7 percentage points higher compared to November, while 4.6 percentage points lower than in the same month of the previous year, as announced by the China Automobile Dealers Association (CADA).
The supply of vehicles improved amid the increased supply of semiconductor chips. However, the worsening Covid-19 pandemic in some regions of China will exert a negative impact on migration of workers during the Chinese New Year holiday (January 31-February 6), which will reduce demand for vehicles.