China Auto Dealers Report High Inventories, and Auto Sales to Improve in Second Half of 2017

SHANGHAI, May 25 (SMM) – CITIC Securities expects China’s auto sales growth to expand in the second half of year, the traditional peak season. Moreover, auto buyers will be likely to purchase vehicles ahead of schedule before preferential policy on small-engine vehicle’s purchase tax be canceled in 2018.

According to China Automobile Dealers Association, China's comprehensive inventory coefficient for car dealers was 1.92 in April 2017, up 16% MoM and 25% YoY, showing high inventories at dealers.

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Besides, some auto makers cut output to reduce inventories on hand to support prices, as rising inventories slashes profits. China’s auto production was 2.14 million sets in April 2017, down 17.9% MoM and 1.9% YoY, learned from China Association of Automotive Manufacturers (CAAM).

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