China’s auto dealer inventory warning index stood at 52.9 percent in May, 3.5 percentage points lower than 56.4 percent recorded in April, while 1.3 percentage points lower than that recorded in the same month of the previous year, as announced by the China Automobile Dealers Association (CADA).
The year-on-year and month-on-month declines in the auto dealer inventory warning index in May indicated that the pressure on auto dealers eased to some extent. However, auto sales in May are expected to reach 1.725 million units, up 8.8 percent year on year and 5.0 percent month on month, which is lower than market players’ expectations. As for June and July, CADA said it expects that auto sales will indicate a seasonal downtrend.