Gasgoo Munich-Gasgoo has learned that the China Automobile Dealers Association (CADA) recently released its inventory survey results for March 2026. The comprehensive inventory coefficient for auto dealers stood at 1.76, down 9.7% month-on-month but up 12.8% year-on-year. It remains above the warning line, indicating persistent pressure on industry inventories.
Image Source: China Automobile Dealers Association
The CADA noted that the auto market in March followed a "low start, high finish" trajectory, with a steady recovery. The first half of the month marked a post-Spring Festival repair phase, seeing slow demand recovery. In the second half, over 20 provinces and cities launched spring auto consumption campaigns. Trade-in subsidies took effect, dealers ramped up discounts and financial incentives, and end-market demand gradually improved, causing inventory depth to retreat month-on-month. More than 60 new models launched that month, lifting market attention, but with most deliveries concentrated after April, the buzz didn't fully translate into March sales.
According to the CADA's Passenger Car Committee, passenger vehicle retail sales reached 1.648 million units in March. Based on this, the total inventory held by auto dealers at the end of March was estimated at roughly 2.9 million units.
Inventory performance showed a clear split among brands in March. The inventory coefficient for high-end luxury and imported brands hit 1.91, up 11.0% from the previous month. Joint venture brands saw a sharper rise to 2.21, climbing 28.5%. Domestic brands, meanwhile, bucked the trend with a coefficient of 1.51, down 28.4%. Among mainstream brands, 16 carried inventory depths exceeding two months, with Dongfeng Nissan, Dongfeng Honda, and FAW Hongqi facing the greatest pressure.
International standards consider an inventory coefficient of 0.8–1.2 reasonable, while anything above 1.5 enters warning territory. Although the current coefficient of 1.76 shows month-on-month improvement, it remains above the warning line, meaning the industry still faces notable inventory pressure.
The auto market is projected to maintain a mild recovery in April. New product launches at the Beijing Auto Show, potential early release of demand ahead of the Labor Day holiday, and sustained policy support should drive month-on-month sales growth. However, seasonal factors—such as the busy farming season in the north and Qingming Festival traditions in the south—could trigger short-term pullbacks in some regional markets.
The CADA suggests dealers should rationally estimate market demand and carefully manage inventory pace. It recommends promoting trade-in policies, boosting consumer confidence through service, and adhering to cost reduction and efficiency improvements to mitigate operational risks and ensure the smooth functioning of distribution channels.
