China Automobile Dealers Inventory Alert Index Shows Improvement in November 2024
Shanghai (Gasgoo)- The China Automobile Dealers Association (“CADA”) recently released the latest “China Automobile Dealers Inventory Alert Index” (VIA), indicating positive trends in the automotive distribution sector. In November 2024, the VIA for Chinese automobile dealers reached 51.8%, marking an year-on-year decrease of 8.6 percentage points but a month-on-month increase of 1.3 percentage points.
The CADA attributed the market’s momentum to supportive national policies and local subsidy programs, particularly focused on vehicle trade-ins and replacements. Automakers and dealers also capitalized on events like the “Double 11” online shopping promotions and Auto Guangzhou 2024 to boost sales in November.
Despite these positive developments, many dealers reported that market performance fell short of expectations. In a survey conducted by CADA, 58.2% of dealers expressed dissatisfaction with their results. To meet year-end targets and secure annual rebates, dealers are ramping up inventory replenishment efforts to improve cash flow.
However, the increase in sales has not translated into significant improvements in dealer profitability. Liquidity challenges remain a concern, highlighting the need for ongoing industry adjustments and support.
When analyzing the VIA by brand type, luxury & imported brands and China’s self-owned brands saw decreases in their indices, while mainstream joint-venture brands experienced an uptick in readings.
