China Passenger Car Association: The comprehensive inventory coefficient of automobile dealers in October was 1.10, a year-on-year decrease of 35.3%.

On November 10, the China Automobile Dealers Association released the results of the "Automobile Dealer Inventory" survey for October 2024: the comprehensive inventory coefficient of automobile dealers in October was 1.10, a decrease of 14.7% compared to the previous month and a decrease of 35.3% year-on-year. The inventory level is below the alert line and has entered a reasonable range. I. Inventory coefficient decreased year-on-year and month-on-month in October. With the surge in the October car market, sales growth was driven by multiple factors. The automobile scrappage renewal policy and local replacement subsidy policy greatly stimulated consumer enthusiasm for buying cars. As of October 24th, over 1.57 million applications for national automobile scrappage renewal subsidies were submitted, and over 1.26 million applications for local car replacement subsidies were made, showing a rapid growth trend in subsidy applications. In addition, factors such as the National Day car show, year-end promotions by dealers, and the launch of new cars have also strongly boosted sales, leading to a continuous decrease in dealer inventories, ushering in the traditional peak season of "Golden September and Silver October". It is estimated that by the end of October, the total inventory of automobile dealers was around 2.6 million vehicles. The overall inventory size of channels has not changed much, mainly due to the increase in sales, leading to a decrease in inventory coefficients. II. Inventory coefficient of high-end luxury, imported, joint venture, and domestic brands decreased month-on-month. The inventory coefficient of high-end luxury & imported brands was 1.23, a decrease of 16.3% month-on-month; the inventory coefficient of joint venture brands was 1.05, a decrease of 11.8% month-on-month; the inventory coefficient of domestic brands was 1.07, a decrease of 15.7% month-on-month. III. Caution in anticipating market demand in November 2024, and reasonable control of inventory. As November approaches the end of the year, dealers are speeding up sales pace to achieve sales targets and taking advantage of the "Double 11" shopping festival to promote sales. The survey shows that 71.5% of dealers plan to launch "Double 11" car purchase promotions in early November, while 18.0% of dealers have chosen to start promotions in mid to late October to seize the initiative of "Double 11". Additionally, as the autumn harvest ends in various areas and the weather cools down nationwide, coupled with the upcoming Spring Festival, consumer willingness to purchase cars is strengthening. Therefore, it is expected that car sales in November will increase compared to October, and the car market will continue to maintain a peak season sales trend. The China Automobile Dealers Association suggests that the uncertainty of the future car market is increasing, and dealers should estimate actual market demand rationally based on the actual situation. They should also increase promotion efforts on the "trade-in old for new and scrappage renewal policies", boost consumer confidence through strengthened services, prioritize cost reduction and efficiency improvement, and guard against operational risks.