China Automotive Distribution Association: Expect Stable Operation of Car Market in August
【Dahue Financial Cube Reporter Zhang Kerong】July 31, the China Automotive Distribution Association released the latest issue of the "China Automotive Retail Inventory Warning Index Survey" VIA (Vehicle Inventory Alert Index) showed that the inventory warning index for Chinese automotive retail in July 2025 was 57.2%, down 2.2 percentage points from the same period last year and up 0.6 percentage points from the previous month.
According to the investigation, the car market stepped into the traditional off-season in July. Due to the phase-out of regional subsidies, the adjustment of automobile consumption financial refunds, and the reduced promotional efforts by manufacturers, consumers' sentiment became more cautious.
Some dealerships reported that market enthusiasm was lower than in June, with 47.7% of dealers believing that the overall car market trended downward in July and the decline exceeded 5%. Although the mid-year surge formed a certain buffer for demand in July, the effective digestion of pre-existing orders and the driving force of summer tourism still maintained a relatively high level.
In recent days, extreme weather conditions have been frequent, adding to the impact of car manufacturers' heat wave holidays and dealerships' reduced inventory replenishment after June's surge. As a result, dealership inventory levels have dropped slightly compared to the end of June.
The China Automotive Distribution Association believes that current dealerships face the following challenges: terminal customer traffic is trending downward, consumers are influenced by market environment and policy adjustments, leading to prolonged decision-making cycles and lower sales rates; inventory turnover speed slows down, resulting in continuous financial pressure, squeezed profit margins for new car sales, and increased operating pressures for dealerships.
The VIA shows that from the index situation of different regions, July's overall index was 57.2%, with northern region at 60.5%, eastern region at 59.8%, western region at 52.9%, and southern region at 53.4%. From the index of different brand types, high-end and imported, cooperative brands rose in July, while domestic brands declined.
As for the performance in August, the China Automotive Distribution Association predicts that the overall car market is expected to run smoothly. Although the end of July was affected by typhoon weather and heavy rainfall, short-term consumer demand was suppressed, but as the new semester begins and purchases gradually release, it is expected that the car market will be driven forward with promotional activities and auto shows in cities such as Chengdu.
It's worth noting that the National Development and Reform Commission, Ministry of Finance, etc. have recently issued the third batch of 690 billion yuan national subsidies for this year to continue supporting local implementation of "buy old and new" policies, with the fourth batch scheduled to be released in October.
The China Automotive Distribution Association recommends that dealerships should reasonably estimate actual market demand based on their situation. At the same time, they should step up the promotion of the "buy old and new" policy and strengthen services to boost consumer confidence, prioritize cost reduction, and prevent operating risks.
Editor-in-Chief: Li Wenyu | Reviewer: Chen Xiaojun | Auditor: Li Zhennan | Supervisor: Guqin