Description
The China Automobile Dealers Association (CADA) has been conducting regular surveys on the inventory levels of automobile dealers in China since July 2010. Through the survey of automobile purchases, sales, and inventory levels of Chinese dealers, CADA calculates the inventory status of various automotive brands and the industry's comprehensive Inventory Coefficient (Inventory Coefficient = Ending Inventory / Current Sales). This coefficient reflects the inventory depth of the automobile brands managed by Chinese dealers, helping manufacturers to optimize production planning and reduce operational risks.
An Inventory Coefficient between 0.8 and 1.2 indicates that inventory levels are within a reasonable range. A coefficient greater than 1.5 signals that inventory is approaching a cautionary level and requires attention. A coefficient above 2.5 indicates excessively high inventory, posing significant operational pressure and risk.
The China Inventory Coefficient of Car Dealers is typically released in the middle of each month, providing data for the previous month.