Chinese Car Dealers Report Inventories Remain High
According the the China Automobile Dealers Association, despite efforts by car makers to reduce inventories, Chinese domestic brand dealers still had 49 days worth of supply in June, a figure that would be considered decent in North America, where two months is the norm. But it’s a matter of concern in China, where normal dealer inventories are 24 to 36 days. That figure is an improvement over the 61 days of supply at the end of May.
Chery had the highest inventory of Chinese brands, 95 days, and BAIC was second worst at 78 days. Car sales growth in China has slowed in recent months concurrent with a slowing of overall economic activity in China.
Import dealers had a 56-day supply, a solid improvement from 80 days a month earlier.
Inventories for dealers of foreign brands assembled in China went up slightly to 44 days, from 42. CADA said that Chinese dealers for both foreign and domestic brands have been lowering prices to trim those inventories and meet sales targets.
The upholstery in that showroom car is making my eyes hurt. Please tell me that it's some dealer 'upgrade' and that GM isn't actually building them in that combination.