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Driven by replenishment of inventory and promotion of consumption, sales in the third quarter may be significantly better than those in the first half of the year.
Sep 23,2020 09:03CST
translation
[driven by replenishment of inventory and promotion of consumption, sales in the third quarter of the car market may be significantly better than in the first half of the year.] A number of people in the automobile industry said in an interview on September 22 that the automobile industry has now entered an active inventory replenishment cycle, and under the state policy to stimulate consumption, car sales in the third quarter are significantly better than in the first half of the year, and the industry market has begun to recover in an all-round way.
The content below was translated by Tencent automatically for reference.

SMM: a number of people in the automobile industry said in an interview on September 22nd that the automobile industry has now entered an active inventory replenishment cycle, and under the national policy to stimulate consumption, car sales in the third quarter are significantly better than those in the first half of the year, and the industry market has begun to recover in an all-round way.

Great Wall automobile staff told the Financial Associated Press, "the recovery of the car market is a high-probability event, and the state's policy of stimulating consumption has certainly played a role in promoting the recovery of the car market. Although the efforts are not strong, the impact of overdraft on the car market in the future is relatively small." In addition, replenishing inventory is not a long-term situation, or there are differences from time to time, which will increase the order pressure of car companies in the long run. "

Benefiting from this active replenishment cycle of the auto industry, the auto parts industry has also gradually recovered. Precision forging technology staff told the Financial Associated Press: "at present, according to the market feedback we have received orders, the whole industry is indeed picking up since the third quarter, which is better than orders in the first and second quarters."

The HKIFA believes that as the traditional sales peak season, the Ministry of Commerce is scheduled to hold a national "consumption Promotion month" from September to October, and various local governments have responded positively, and auto shows and other marketing activities have been launched one after another, superimposed with the existing local car market stimulus policies to further stimulate consumer demand. The retail market is expected to continue to grow steadily in September.

At the same time, triangle tire staff also pointed out: "the state to encourage consumption is only one aspect, to a certain extent, will have an impact on prices, tax cuts, thus affecting car purchase behavior." However, it still needs the whole consumer market to become active before the automobile market can become active. It does not mean that to promote consumption, ordinary people will go to spend, but ordinary people will only spend when they need it. "

According to the data of the National Bureau of Statistics, under the stimulation of a low base, the launch of new products, auto show promotion and policies to promote automobile consumption, retail sales of automobile goods per unit above the quota increased by 11.8% in August compared with the same period last year, continuing to maintain double-digit rapid growth. According to the China Automobile Circulation Association, comprehensive sales of narrow passenger cars rose 9.0% in August from a year earlier, 1 percentage point faster than in July, indicating a significant pick-up in the auto market recently.

Cars
production capacity
China
inventory

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