China's vehicle inventory alert index in May drops 9.6 percentage points MoM

Shanghai (Gasgoo)-

China's vehicle inventory alert index (“VIA”), which reflects the inventory pressure on automobile dealers, declined 9.6 percentage points month on month in May 2022, according to the China Automobile Dealers Association (CADA).

The VIA stood at 56.8% in May, growing 3.9 percentage points from the year-ago period. The index was still above the official warning threshold (50%).

In May, China's auto sales posted an evident rebound over the previous month with the automobile production and logistics operation gradually recovering, and car consumption demands were somewhat unleashed partly thanks to governmental incentives, said the association.

The CADA said PV retail sales in May would record a smaller year-on-year decrease than that of April.

In May, dealerships faced a favorable turn over a month earlier regarding showroom traffic.

The sub-index for inventories, market demands, and average daily sales in May all increased compared to the previous month.

In May, the VIAs of imported & luxury brands, mainstream joint-venture brands, and Chinese indigenous brands reached 55%, 57.5%, and 56.4%, dipping 6.8, 10.3, and 10.1 percentage points over a month ago respectively, according to the CADA.