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Auto dealer inventory alert index data for March 2014

According to CADA’s auto dealer Vehicle Inventory Alert (VIA) index report, the index for the Chinese market was 44.5 percent in March 2014, a drop of 13.7 percentage points from the previous month.

Monthly VIA index for Chinese auto dealers in 2013-2014

 

The 44.5 percent VIA index reported for March is below the alert level. It represents a 13.7 percent drop from the February, and clearly indicates that demand in the auto market has increased, which reduces inventory stress.

The five sub-indexes which make up the auto dealer VIA are as follows: total demand, inventory, sales, employees and state of operation. All of these showed various levels of improvement: market demand increased, dealer inventory decreased, increased employee turnover at 4S stores. These improvements indicated that the entire market is in a bullish period.

The index data are as follows:

In March, the total demand index was 60.8 percent, a 47.0 percent increase from the previous month. According to the report, the percent of dealers who said that market demand had “increased” rose from the previous month’s 5.9 to 45.2 percent; the percent of them who believed demand “basically remained steady” rose from the previous month’s 15.6 to 31.2 percent. Finally, the percent of dealers who believed it had “decreased” fell from 78.4 to 23.7 percent.

In March the inventory index was 69.4 percent, a 4.6 percent increase from the previous month. According to the report, the percent of dealers who said that inventory had “increased” rose from 46.9 to 50.5 percent; the percent who said it “basically remains steady” rose from 35.5 to 37.6 percent; the percent who said it “decreased” fell from 17.5 to 11.8 percent.

The sales index for March was 57.5 percent, an increase of 37.5 percent from the previous month. According to the report, the percent of dealers who said that average daily sales had “increased” rose from 9.7 to 41.9 percent; the percent who said that it “basically remained steady” rose from 20.6 to 31.2 percent; the percent who said that it “decreased” fell from 69.7 to 26.9 percent. 

In March, the employee index was 54.0 percent, an 8.6 percent increase from the previous month. According to the report, the percent of dealers who said that the number of employees working for them had been “reduced” fell from the previous month’s 17.8 percent to 12.6 percent; the percent who said it “increased” rose from 8.6 to 20.7 percent; the percent who said it “basically remained steady” fell from 73.6 to 66/7 percent.

The state of operations index for March was 46.2 percent, a 17.0 percent increase from the previous month. According to the report, companies with a “normal” state of operations rose from 51.2 to 68.8 percent. Those with a “good” state of operations rose from 3.6 to 11.8 percent; those with a “bad” state of operations fell from 45.2 to 19.4 percent.

(Rewritten by Oliver Spiro based on the original CADA report)

 

 

 

 

 

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