Gasgoo.com (Shanghai Feb 23nd)– According to a survey result about auto dealers’ inventory, conducted by China Automobile Dealers Association and released on Feb 20th, the inventory coefficient of auto dealers in this January falls to 0.99, a 3% decrease compared against last December. The inventory coefficient reflected the result of a dealer’s inventory divided by its sales and a lower coefficient means the dealer is under lower inventory pressure.
This January, the sales of passenger vehicles in China’s domestic market increases 13.5% to 2.352 million, boosted by the holiday shopping before China’s Spring Festival. Most dealers have basically no pressure on inventory and some of them even experience inventory shortage.
Last December, the inventory coefficient of JV brands dropped 3% to 0.84 while that of domestic brands dropped 6% to 1.16. Meanwhile, the coefficient of imported brands increased 4% to 1.58.
According to the survey result, this January, dealers’ inventory pressure is relatively low with a less than 2 month inventory.
Influenced by the spring festival holiday, the market demand in February will decrease significantly compared against this January, which could lead to sharply increasing inventory pressure upon dealers. China Automobile Dealers Association suggests the dealers should control their inventory accordingly before it goes to dangerously high.
