October car inventory index was 49.9%. It was below the warning line for March.

Recently, China Automobile Dealers Association released the "China's auto dealers inventory warning index" VIA (Vehicle Inventory Alert Index) shows that in October 2017 car dealer inventory warning index was 49.9%, up 1.2 percentage points from the previous month, is located in Below the cordon. Combined with the previous data, in August China's car dealers inventory warning index was 47.1%, in September this index was 48.7%, so as of October, the index has been below the alert line for three consecutive months.

From the perspective of regional indices: According to surveys, the national total index was 49.9% in October, the northern index was 54.1%, the western index was 55.4%, the southern index was 48.6%, and the eastern index was 44.8%. In October, due to the impact of the 19th and northern regions, the Northern Region's inventory early warning index increased; due to the September Chengdu Auto Show overdraft sales in the western region in October, the Western Region inventory warning index increased.

According to the association, the auto market began to enter the traditional peak season in October, and the expiry of the purchase tax concession has also become a positive factor in promoting the market demand this month. Based on the optimism of end-of-year demand, and in response to the demand arising from the end of policy withdrawal at the end of the year, dealers replenish stockpiles in preparation for the end of the year. This should be one of the reasons that the dealership inventory warning index in October has risen relative to September.

For the next November, the association expects market demand to increase from October. In the survey, the percentage of dealers who believe that market demand “increases” is 59.4%; the proportion that believes that market demand “decreases” is 11.9%; and the percentage that believes that market demand is “flat” is 28.7%. At the same time, the survey showed that the ratio of “good” operation in November was 29.4%, the ratio of “bad” was 8.4%, and the ratio of “general” was 62.2%. Therefore, it can be expected that dealers will continue to improve in November.

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