China's auto dealership inventory coefficient was 1.59 in May

China Automobile Dealers Association officially announced on May 12th May 2018 "car dealer inventory survey results" show that in May the car dealers comprehensive inventory coefficient was 1.59, an increase of 1% year-on-year, a decline of 4%, inventory levels above the alert line .

According to the survey, in May, the Chinese auto market has a big difference from the expectation. The import tariff adjustment policy has lengthened the waiting period for imported car customers; in some regions, the enthusiasm for real estate investment has affected consumers' car purchase decisions; some regions have entered the busy season. , The rural consumer to store rate dropped. Car prices continued to decline in May, and dealers are still under pressure to operate.

In May, the inventory ratio of joint-venture brands and self-owned brands decreased, while the inventory coefficients of high-end luxury and imported brands increased. Among them, the joint-stock brand automobile inventory coefficient was 1.41, a drop of 8% from the previous month; the self-owned brand automobile inventory coefficient was 1.78, a decrease of 24%; the high-end luxury and imported brand automobile inventory coefficient was 1.65, an increase of 6%.

According to the analysis, the sprint of automobile sales in the second quarter and the first half of the year in June will inevitably lead to price competition; customers of imported cars will be affected by tariff adjustment policies and passenger traffic will continue to decline.

The China Automobile Dealers Association recommends that dealers should rationally estimate the actual market demand and reasonably control the inventory level in light of the actual situation to prevent excessive inventory pressure and lead to operational risks.

According to the prevailing practice of the same industry in the world, the inventory coefficient is between 0.8 and 1.2, reflecting the inventory is in a reasonable range; the inventory coefficient is greater than 1.5, reflecting the stocks reaching the alert level, need attention; inventory coefficient is greater than 2.5, reflecting the inventory is too high, operating pressure And the risks are very big.