Currently, data from CADA shows that Vehicle Inventory Alert Index shows 52.5% in July, decreasing 5.7 percentage points than the previous month, but it still stays higher than the 50% alert line.
To accomplish the semi-annual target, some engine plants increase dealerships’ delivery capacity in June. Slack market demand in June also stimulates VIA to increase to 58.2%. Some dealerships began to control inventory with the coming of slack seasons, showing decreasing VIA in July. But the number also keeps higher than the alert line, showing large inventory pressure.
It’s analyzed that the lowering market demand resulted by high temperatures and the overdrawn demand by promotion activities in June are the main reasons for the high VIA. Besides, the hot house transactions also attract great funds, resulting in lowering demands.
It should be mentioned that VIA numbers across all national districts have also been released in July. The northern, eastern, western and southern areas have the VIA numbers of 49.6%, 53.0%, 56.6% and 50.9% respectively. Large international auto shows in northern areas stimulate the local demands, showing the lowest VIA number.
It’s expected that auto sales volumes continue to keep down in August. In the meantime, dealerships are also pessimistic on the market environment in August.
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