Dealer Pressure Reduction! January only Zhongtai and other three brands inventory depth more than two months

In the first month of 2019, China's auto market is still in the doldrums. According to the latest figures from the China Association of Automobile Manufacturers, China's auto production and sales reached 2.365 million vehicles and 2.367 million vehicles respectively in January, down 12.1% and 15.8% from the same period last year. However, despite the poor market conditions, dealer inventory pressure has been significantly reduced. The latest survey of China Automobile Dealers' Inventory Warning Index released by China Association of Automobile Circulation shows that the auto dealers' inventory warning index in January 2019 was 58.9%, down 7.2 percentage points from January 2019 and 8.3 percentage points from January 2019. It can be seen that although the index is still above the warning line, but the situation has improved significantly compared to before. Photo Source: China Association of Automobile Circulation In addition, according to the results of the January 2019 survey on "Automobile Dealer Inventory" released by the China Association of Automobile Circulation, the comprehensive inventory coefficient of automobile dealers in January was 1.40, down 12% year-on-year and 19% month-on-month, and the inventory level was below the warning line. Specifically, in January, independent brands, joint ventures, high-end luxury-import brand inventory coefficient showed a downward trend. Inventory coefficient of independent brands was 1.67, 16% lower than that of the previous month; The inventory coefficient of joint-venture brands was 1.35, 21% lower than that of the previous month. High-end luxury-imported brands had an inventory factor of 1.21, down 19 per cent from a month earlier. Photo Source: China Association of Automobile Circulation In line with the above, brands with inventories longer than two months fell sharply in January. The survey showed that there were more than two inventories in depth in January May there are three brands, respectively, Dongfeng Qichen, SAIC Roewe, Zhongtai. That compares with nine brands with inventories longer than two months in December 2018 and 21 brands with inventories longer than two months in November 2018, according to previous data. For the above changes, the China Association of Automobile Circulation said that in January, most manufacturers have not yet clear mission targets, dealer ordering pressure reduced, in addition, dealers near the Spring Festival, dealer activities to carry out promotional inventory, dealer inventory pressure significantly reduced. For the following February, the association pointed out that February Spring Festival holiday, the number of working days reduced, is the traditional sales season, sales decline, dealers need to be careful to anticipate February market demand, reasonable inventory control.