China's auto dealer inventory warning index for January was 67.2%

Due to the withdrawal of the purchase tax incentive, the concentrated purchase at the end of 2017 overdrafted the consumer demand
in January.
With the Spring Festival approaching, migrant workers from other places returned to their hometowns early, resulting in a decline
in demand.
Nationwide snow and ice weather in January also affected consumer visits
.
In addition, the economic downturn and rising prices, which led to a decline in consumer purchasing power, were also the main reasons for affecting the
market in January.

From the perspective of sub-indexes: the survey shows that the market demand sub-index and sales sub-index fell sharply in January, indicating weak market demand; At the same time, the inventory index rose month-on-month, and the pressure on dealer inventory increased
.

In terms of regional indexes, the national total index in January was 67.
2%, the northern index was 72.
7%, the western index was 67.
2%, the southern index was 50.
9%, and the eastern index was 63.
4%.

In January, the inventory warning index in all regions rose sharply from December, and was above
the warning line.

From the perspective of sub-brand type index: the joint venture brand index and the independent brand index in January 2018 both increased sharply from December, and the import & luxury brand index was basically the same
as the previous month.
The withdrawal of the preferential purchase tax policy has a greater
impact on joint venture brands and independent brands.

According to the survey, dealers are still not optimistic about February's expectations, dealers expect the inventory index to continue to rise in February and the market demand index to continue to decline
.

Therefore, the China Automobile Dealers Association suggests that dealers should rationally estimate the actual market demand according to the actual situation and reasonably control the inventory level to prevent excessive inventory pressure and lead to business risks
.