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CADA: CN Feb Inventory Coefficient of Car Dealers Climbs 26.1% MoM
The comprehensive inventory coefficient of automobile dealers in Mainland China in February was 1.74, up 26.1% month-on-month and down 9.8% year-on-year, indicating that the invent...
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CADA: CN Feb Inventory Coefficient of Car Dealers Climbs 26.1% MoM
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The comprehensive inventory coefficient of automobile dealers in Mainland China in February was 1.74, up 26.1% month-on-month and down 9.8% year-on-year, indicating that the inventory levels were above the alert line, as data released by the China Automobile Dealers Association (CADA) showed.
According to the CADA, February is the traditional off-season for consumption, and the production and sales volume of passenger cars were slackened by impact of the Spring Festival holiday. After the holiday, automakers cut prices one after another, and end-user prices fluctuated in a larger magnitude, heightening consumers' wait-and-see sentiment.
Some consumers' demand for cars may be put off until the spring auto show in March, resulting in weaker-than-expected sales in February. As manufacturers resumed production at an accelerated pace in the second half of February, dealers entered a replenishment phase in the fourth week of the month, sparking a rise in inventory levels.
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