Auto retailers are performing well as a whole. Grand Baoxin (01293) increased by 11.25%, Zhongsheng Hldg (00881) increased by 5.25%, Meidong Auto (01268) increased by 4.95%, Yongda Auto (03669) increased by 2.47%, and Harmony Auto (03836) increased by 2.15%.
On July 10th, the China Automobile Dealers Association released the results of the "Automobile Dealer Inventory" survey for June 2024. The comprehensive inventory coefficient of auto dealers in June was 1.40, a decrease of 2.8% compared with the previous month and an increase of 3.7% compared with the same period last year. The inventory level is below the warning line.
Due to the spread of pessimism among dealers, they are strictly controlling inventory levels to ensure the safety of their cash flow. In addition, some automakers have entered the summer break, resulting in a significant reduction in dealer inventory levels, returning them to a reasonable range. It is estimated that the terminal sales volume of passenger vehicles in June was approximately 1.75 million units, and the total inventory of auto dealers at the end of June was estimated to be around 2.5 million units, with a decrease in the inventory-to-sales ratio.