AutoBeta(AutoBeta.net)04/02 Report--

With the intensification of market competition, the current situation of dealers has not changed much, and inventory is still at a high level. According to the March dealer report released by the China Automobile Circulation Association, the inventory early warning index of automobile dealers in March was 55.3%, down 8.3% from the previous month, and up 3.2% from a year earlier, and the inventory early warning index remained above the warning line.

Since 2018, the dealer inventory index has been high and has exceeded the warning line for 15 consecutive months.

The China Automobile Circulation Association estimates that overall sales in the domestic car market fell by about 8% in March and by about 6% in the first quarter.

In terms of brands, the inventory index of imported and luxury brands and joint venture brands all decreased significantly compared with last month, while that of independent brands increased, with the inventory index reaching 66.2%, which is much larger than that of imported, luxury and joint venture brands. 50% is a reasonable level, and the higher the index, the lower the market demand, the greater the inventory pressure, and the greater the operating pressure and risk.

Lang Xuehong, deputy secretary general of the China Automobile Circulation Association, said, "by March, the complex factors in the automobile market have increased. Although the two associations have decided to reduce the value-added tax, the price of the car terminal has not been adjusted. This is because after last year's price for volume, the car terminal price has deviated from the official guidance price." At the same time, March is the last month of the first quarter, and most mainframe factories have quarterly reviews, so many distributors will replenish their inventory to meet their quarterly targets, while many consumers are in a wait-and-see state because of the drop in VAT. As a result, the replenishment of dealers has not been digested in time.

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