September warning index was below the warning line, and “Jin 9 Silver 10” helped increase sales

On October 10th, the China Automobile Dealers Association held a monthly situation analysis meeting in September. According to the “China Automobile Dealership Inventory Early Warning Index Survey” released, the inventory warning index for September 2017 was 48.7%, up 1.6 from the previous month. Percentile, but continues to be below the warning line (50%).

It should be noted that the higher the inventory warning index, the lower the demand reflecting the market, and the greater the inventory pressure, the greater the operating pressure and risk. The inventory index has increased from last month, indicating that the total market demand has decreased, sales volume has dropped, and inventory pressure has increased.

The Automobile Circulation Association pointed out that the traditional sales season began in September, and the sales of various OEMs and distributors increased, and the market demand increased. The purchase tax incentive policy is about to expire, plus customers who choose to travel between the 11th and 11th holidays. The increase also further boosted sales. All these factors contributed to the steady early warning of the inventory warning index for the previous month.

However, due to the fact that some customers are still waiting and watching, they are waiting for the preferential treatment in October; while some regions are also entering the busy season, the arrival rate of rural consumers has dropped; in some regions, due to the decline in real estate prices, but also part of the car purchase. The demand turned to the real estate market.

On the other hand, due to entering the end of the third quarter, some brands have started to increase their efforts to press warehouses, and dealer inventory pressure has increased from the previous month. As a result, the inventory warning index has risen slightly from the previous month.

The circulation association believes that October is a traditional peak season for the auto market. Dealers expect that market demand will increase in October, and business conditions will improve. In the survey, the proportion of dealers who believe that market demand “increases” is 43.9%; the proportion that believes that market demand “decreases” is 14.6%; and the ratio that believes that market demand is “flat” is 41.4%.