Car dealer inventory for 8 consecutive moon red light: higher than 50% alert

June 1st, China Automobile Circulation Association released &ldquo, China auto dealer inventory warning index survey ” show, May 2015 inventory warning index was 57.3%, although the previous month fell by 3.2 percentage points, but is still in the level of 50% alert level, the dealer inventory warning index has been 8 consecutive months higher than 50%.

It is understood, high car dealer inventory pressure began in 2014, and into 2015. This situation is not only not improved, but more serious. China Automobile Circulation Association show that this year 1-4 month, the stock early warning index was 61.9%, 67.5%, 60.5%, 50.9%, always on the alert level. May, a slight decrease in inventory, but an increase of 8%, compared with the dealer operating status did not upgrade last month.

China Automobile Circulation Association Deputy Secretary General Lang Xuehong said that in May, holidays and local auto show activity has a good role in promoting the automotive market, resulting in May total market demand increased by the dealer, the dealer sales increase, inventory pressure slightly reduced. But the economic slowdown, the stock market hot, 4S high cost, high investment model is not sustainable, as well as the electricity suppliers and other factors to bring a certain pressure.

In accordance with market practice, June and July will be the year of the car market sales season. For dealers, or to increase the inventory of digestion. At the same time, in June, the end of the first half of the year, the manufacturers of production and sales plan will be more than half of the time, more than half of the task. If it is the task of the pressure is relatively large manufacturers, the dealer's pressure on the strength may be increased, which may give the dealer operating conditions in June to bring pressure.

In this regard, China Automobile Circulation Association Secretary General Xiao Zhengsan suggested that in June the total market demand reduction, sales volume reduction, inventory pressure increase, therefore, the dealer to respond to the market to maintain a rational judgment, reasonable control of inventory, reduce the operating risk due to inventory changes.