In October 2020, the inventory coefficient of auto dealers is 1.57 From China Automobile Circulation Association

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The following is the In October 2020, the inventory coefficient of auto dealers is 1.57 From China Automobile Circulation Association recommended by recordtrend.com. And this article belongs to the classification: Automobile industry.

On November 10, 2020, China Automobile Circulation Association released the survey results of “auto dealer inventory” in October 2020: in October, the comprehensive inventory coefficient of automobile dealers was 1.57, a significant increase of 12.9% year-on-year, and a slight increase of 0.6% month on month. The inventory level was above the warning line.

1、 In October, the inventory coefficient rose sharply year on year

In October, China’s macro-economy recovered and recovered. In the peak season of the “silver decade”, marketing activities were launched in all parts of the country. Under the joint action of Beijing auto show and new car launch at the end of September, market demand was further accelerated. With the impact of manufacturers on the annual target, dealers’ inventory pressure has increased.

2、 The inventory coefficient of high-end luxury & import, joint venture and independent brands was basically the same as that of last month

The inventory coefficient of high-end luxury & import, joint venture and independent brands was basically the same as that of last month. The inventory coefficient of high-end luxury & imported brands was 1.31, up 0.8% month on month; the inventory coefficient of joint venture brands was 1.57, up 1.3% month on month; the inventory coefficient of independent brands was 1.71, which was the same as that of last month.

Under the influence of high-end exchange demand and promotion price brought by consumption upgrading, luxury brands’ market performance continued to strengthen, and the inventory coefficient was in a reasonable range. Joint venture and independent brands continue to make efforts, continue the market performance of last month, and the inventory pressure is similar.

3、 Brands with the highest inventory depth in October

In October, there were 7 brands with inventory depth more than 2 months, among which Dongfeng Infiniti, Skoda and Roewe had the highest inventory depth.

4、 Cautious expectation of market demand in November and reasonable inventory control

Since the beginning of the year, the policy of promoting automobile consumption has achieved good results, and the follow-up favorable policies may be recovered. In addition, the manufacturers enter the stage of sales target sprint near the end of the year, so the inventory pressure may increase, but the sales peak season is expected to continue. In November, Guangzhou and other local auto shows, double 11 car purchase and other marketing activities have further stimulated consumption and boosted sales. It is predicted that the sales volume in November will continue to be at a high level of about 1.9 million units.

China Automobile Circulation Association suggests that dealers should rationally estimate the actual market demand and reasonably control the inventory level according to the actual situation, so as to prevent the operation risk caused by excessive inventory pressure.

Attachment: description of inventory investigation for automobile dealers

As early as March 2010, China Automobile Circulation Association proposed the construction of “inventory early warning system”, and began to carry out regular inventory investigation of automobile dealers since July 2010. Through the investigation of purchase, sale and inventory of automobile dealers, the inventory status of each brand and the comprehensive inventory coefficient of the industry (inventory coefficient = ending inventory / current sales volume) are calculated to reflect the current inventory depth of automobile brands of automobile dealers, guide manufacturers to reasonably arrange production and reduce business risks.

The purpose of inventory survey of automobile dealers: first, grasp the pulse of the market. Through the investigation of the inventory status of automobile dealers of various brands in China, we can timely grasp the overall situation of the industry and predict the future market trend; secondly, assist the decision-making of regulation and control. Through understanding the changes of dealers’ inventory, provide accurate information for relevant departments to formulate control measures. Third, monitoring operational risk. Reflect the production and sales fluctuation of automobile market in time, arrange production plan reasonably for manufacturers, and provide reference for dealers to formulate marketing strategies and control business risks.

According to the international common practice in the same industry, the inventory coefficient is between 0.8 and 1.2, which reflects that the inventory is in a reasonable range; the inventory coefficient > 1.5 reflects that the inventory has reached the warning level and needs to be paid attention to; the inventory coefficient > 2.5 reflects that the inventory is too high, and the operation pressure and risk are very high.

The inventory survey objects of this month are mainly the top 100 dealer groups in China’s automobile circulation industry in 2017. It covers more than 1000 4S stores in most provinces of the country, and has a wide range of brand coverage. Based on the main automobile brands for mass production and sales in the original domestic market, it has increased to 55 automobile brands.

Read more: China Automobile Circulation Association: the inventory coefficient of automobile dealers in October 2019 is 1.39, China Automobile Circulation Association: the inventory coefficient of automobile dealers in August 2020 is 1.50, China Automobile Circulation Association: The inventory coefficient of automobile dealers in May 2020 is 1.55. China Automobile Circulation Association: the inventory coefficient of automobile dealers in July 2020 is 1.91. China Automobile Circulation Association: the inventory coefficient of automobile dealers in March 2020 is 2.68. China Automobile Circulation Association: the inventory coefficient of automobile dealers in November 2019 is 1.49. China Automobile Circulation Association: the inventory coefficient of automobile dealers in September 2020 is 1.56 China Automobile Circulation Association: April 2020 monthly report of China’s imported automobile market China Automobile Circulation Association: in the first quarter of 2020, 57 luxury brand authorized 4S stores will be added and 41 4S stores will be withdrawn from the network. China Automobile Circulation Association: in March 2020, the sales volume of narrow passenger cars in China will reach 1.045 million China Automobile Circulation Association: the inventory coefficient of automobile dealers in October 2018 was 1.88, and the inventory coefficient of automobile dealers in September 2019 was 1.50. China Automobile Circulation Association: the inventory coefficient of automobile dealers in August 2019 was 1.51. China Automobile Circulation Association: the inventory coefficient of automobile dealers in July 2019 was 1.75. China Automobile Circulation Association: automobile dealers in June 2019 The inventory coefficient of car dealers is 1.38

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