Shanghai (Gasgoo)- On June 30, the China Automobile Dealers Association (CADA) released its latest Vehicle Inventory Alert Index (VIA) for June 2025, reporting a reading of 56.6%. This represents a 5.7 percentage point drop year-on-year, but a 3.9 percentage point increase month-on-month. The index remains above the boom-bust threshold signaling contraction, indicating mounting pressure in the automotive distribution sector.
June marked a key mid-year performance checkpoint for automakers and dealerships, prompting aggressive sales pushes through promotions tied to the Dragon Boat Festival and "6.18" shopping festival. Additional demand came from post-entrance exam family purchases and summer travel plans, helping to lift sales modestly above expectations. However, the launch of new vehicle models and hot, rainy weather contributed to increased consumer hesitation. China's passenger vehicle retail sales for the month are estimated to have reached around 2 million units.
As dealers raced to meet semi-annual targets, inventory levels rose passively. The industry continued to rely heavily on price cuts to drive volume, further straining dealer cash flows. According to CADA's survey, only 27.5% of 4S dealerships met or exceeded their first-half-year sales goals. The remaining 72.5% fell short, with 16.3% nearing completion (in the 90–100% range), reflecting widespread sales pressure and a significant rise in inventory risk.
By vehicle type, the June index of luxury & imported brands, mainstream joint ventures, and China's self-owned brands reached 54%, 59%, and 55.4%, rising 0.1, 8.1, and 1.4 percentage points from the previous month, respectively.
