AutoBeta(AutoBeta.net)04/03 Report--

Market competition intensified, the survival status of dealers did not change much, inventory is still at a high level. According to the latest issue of "dealer inventory warning index survey" released by China Automobile Circulation Association, the inventory warning index of automobile dealers in March was 55.5%, up 3.3 percentage points from the previous month and down 3.8 percentage points from last year. The inventory warning index is above the line of prosperity and decline.

It is worth mentioning that in March last year, most dealers were still affected by the epidemic situation, but due to restrictions, the market demand was not large, and the year-on-year decline was not reflected. At the same time, in addition to March and April as the off-season of the traditional automobile market, the operation of automobile enterprises and major dealers is not optimistic.

After all, after the Spring Festival, into March and April, automobile enterprises will begin to set the index of the new year, at this time manufacturers will allocate larger vehicle sources, so that dealers inventory pressure is greater. In addition, January and February of this year exceeded expectations, overdrawing market demand ahead of schedule.

In terms of brands, the inventory index of imported and luxury brands, the inventory index of joint venture brands and the inventory index of independent brands all rose compared with the previous month, but the inventory index of independent brands rose most obviously, reaching 62.1%. Last month, the inventory index of independent brands was obviously better than that of joint venture brands, but this month was much larger than that of imported, luxury and joint venture brands. According to 50% as a reasonable level, the higher the index, the lower the market demand, the greater the inventory pressure, the greater the operating pressure and risk, so the independent brand still faces greater inventory pressure.

Association analysis, the current epidemic situation on the automobile market consumption impact is not large, so that automobile consumption demand continues to maintain stable growth. Benefiting from last year's overall low base, some agencies forecast that passenger car sales rose 44.2 per cent year-on-year in March, but body growth will slow from April.

The association pointed out that mainly due to the Qingming holiday in April, consumers in some areas of the south are not affected by traditional customs to buy cars in that month, sales will be affected to some extent. And some regions will carry out spring international auto show activities, new cars frequently listed, fierce competition makes prices uncertain, dealers increase marketing efforts, resulting in April market still wait-and-see attitude.

According to WeChat of the Passenger Association, the retail sales performance of passenger cars in the first four weeks of March this year is 5% lower than that in 2019, and the trend is relatively weak compared with the first four weeks in January. However, due to the low base in March 2020 and no sales sprint at the end of the month, the surge in March this year compared with March 2020 is still inevitable.

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