The China Auto Dealer General Inventory Index stood at 1.5 in July this year, which is at the warning level, up from 1.4 recorded in June this year, signaling increasing pressure from inventory, as announced by the China Automobile Dealers Association (CADA).
According to CADA, March is the traditional peak season for vehicle sales, which improved due to Spring Auto Show.
In July, however, the vehicle market reduced discounts and suffered the impact of the traditional offseason, weak demand from users and extreme weather in some regions.
The effect of the trade-in policy and the demand for vehicles during the school season will positively affect the vehicle market in August.