China Automobile Dealers Association The comprehensive inventory coefficient of automobile dealers in October was 1.70.

Inventory Coefficient of Chinese Automobile Dealers Reaches 1.70 in October, Reports China Automobile Dealers Association

【PhoneAuto News】On November 9th, PhoneAuto noticed that the China Automobile Dealers Association released a report on “Automobile Dealer Inventory” for October 2023. The report shows that the comprehensive inventory coefficient of automobile dealers in October was 1.70, an increase of 12.6% compared to the previous month, and a decrease of 3.4% compared to the same period last year. This indicates that although the automobile market has shown some growth during the promotion season of “Silver September, Gold October,” the inventory level of dealers has already exceeded the danger line.

The report further points out that the overall inventory of national automobile dealers at the end of October was approximately 3.4 million vehicles, undoubtedly putting pressure on the automobile circulation field. High inventory means that dealers need to spend more time and money to manage inventory, while also increasing operational risks.

Faced with the pressure of high inventory, automotive companies are also taking measures actively. On the one hand, local governments are stimulating automobile consumption through various policies, such as providing car purchase discounts and exemptions from vehicle purchase taxes during holidays. On the other hand, automakers are also striving to improve product quality and service to attract more consumers. However, despite the efforts of automotive companies, the delivery volume from dealers is increasing. This means that although the market demand is growing, the growth rate may not be keeping up with the speed of delivering vehicles by dealers. This may also be an important reason for the increase in inventory levels. In the face of this situation, automotive companies should pay more attention to changes in market demand, improve production flexibility and efficiency to better meet consumer needs. At the same time, dealers also need to have a more rational view of market demand and inventory situations, and arrange procurement and sales plans reasonably.

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Although the current automobile market is showing a certain growth trend, the inventory pressure on dealers cannot be ignored. Automotive companies and dealers need to work together to reduce inventory pressure and promote the healthy development of the automobile market through policy support, improving product quality and service, and optimizing sales strategies.

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