· April dealer inventory warning index 57.9% is still above the warning line

Yesterday, the China Automobile Dealers Association’s “Vehicle Inventory Alert Index” VIA (VehicleInventoryAlertIndex) showed that the inventory warning index for April 2016 was 57.9%, down 1 percentage point from the previous month, and the inventory warning index was on the warning line. the above. This is also since September last year, the Chinese automobile dealer inventory warning index has been higher than 50% for 8 consecutive months.
Xiao Zhengsan, secretary general of the China Automobile Dealers Association, said that thanks to the increase in market demand, although the overall operating pressure of the dealers still exists, the inventory index has dropped by 1 percentage point, which also shows that the dealers through their own refined operations, The overall business situation has improved.
However, from the five sub-indices that constitute the early warning index, the three indexes of inventory index, total market demand, and average daily sales decreased month-on-month; the employee index and business condition index increased on a month-on-month basis.
Lang Xuehong, deputy secretary-general of the China Automobile Dealers Association, said that overall, the dealer operating pressure in April was slightly better than that in March, but the inventory warning index was still above the warning line, mainly due to the fact that the number of consumers arriving at the store decreased as the north entered the busy season of spring farming. The phenomenon of holding money for purchase is serious.
According to the survey, in April, dealers believed that the proportion of “growth” in total demand increased from 34.2% in the previous month to 40.9%; the proportion of total demand “basically flat” rose from 34.5% to 42.1%; The proportion of “declining” fell from 33.1% to 17%.
It is understood that as a quarter node, dealers experienced a relatively large pressure warehouse situation in the first quarter. After the clearing of the warehouse, most of the dealer inventory pressure has been slightly eased in April.
It is worth noting that since the beginning of April, the spring car exhibitions around the country have been fully launched, and the Beijing Auto Show has also hosted a number of new car listings to stimulate consumption, driving the growth of car demand. In this regard, Lang Xuehong believes that since the spring auto show around the country is basically concentrated in late April and early May, the market sales data in May will still increase.
In response to expectations in May, some dealers are not optimistic about the market. According to the survey, in the end of the first quarter, in order to complete the task of picking up the car, the liquidity of some dealers was once again tense.
The China Automobile Dealers Association also recommended that dealers should maintain a rational judgment in the market, and the automobile market is about to enter the off-season. It is hoped that manufacturers will carefully arrange production and start-up volume in the second quarter to reduce the operational risks caused by inventory changes. "The sales data in the second quarter of last year was relatively low. May and June also belonged to the off-season of the market, so the overall operating pressure of the dealers has not been alleviated." Lang Xuehong said.

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