AutoBeta(AutoBeta.net)08/15 Report--

After an arduous five-nation and six-stage period, the cumulative sales of passenger cars in China from January to July ended with a year-on-year decline of 8.8%, and the depressed car-buying environment continued. The unprecedented price reduction in the terminal market makes the early consumption overdraft have a great impact on the follow-up.

According to the data report released by the Federation of passengers, both terminal retail sales and manufacturers' wholesale figures "plummeted" at the beginning of August.

Retail sales in the passenger car market in the first cycle of August were relatively low, with an average daily retail sales of only 27000 units, down from 40, 000 units in the same period last year and down 31 per cent from a year earlier. In addition, manufacturers wholesale 27000 sets on average for several days, a year-on-year decline of 32%.

The association said that the low level of retail and wholesale in early August is mainly due to the relative downturn of the car market, the strong holiday atmosphere in the market, and the fact that car companies have more holidays and incomplete data, resulting in a slightly slower wholesale progress of manufacturers.

The continued decline in retail volume and wholesale volume reflects that life is not easy for dealers and manufacturers.

According to the association's survey report, the inventory early warning index of automobile dealers in July was 62.2%, up 11.8% from June and 8.3% from a year earlier. The inventory early warning index was above the warning line, the second highest level so far this year. The analysis shows that some areas experienced five countries to six countries in June, consumption was overdrawn in advance, prices were recovered in July, and sales volume decreased significantly compared with June, resulting in increased inventory pressure among dealers.

Dealer inventories are high again, wholesale and retail have plummeted again, and China's car market is likely to be bleak in August.

At the beginning of the year, the China Automobile Association forecast sales of 28 million vehicles in 2019, the same as in 2018. However, after China's car sales remained in the doldrums and fell by more than 10 per cent in the first half of the year, the CAA cut its sales forecast to about 26.68 million vehicles for 2019, down 5 per cent from a year earlier.

The association believes that there is still room for increment in China's auto market in the second half of the year, and the wholesale and retail data are bound to improve significantly.

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