Shanghai (ZXZC)- China's Vehicle Inventory Alert Index (VIA) stood at 55.4% in November 2021, falling 5.1 percentage points from the previous year, while rising 2.9 percentage points from the previous month, according to the China Automobile Dealers Association (CADA). The index was still above the official warning threshold (50%).

The running status of the automotive supply chain has significantly improved as the chip shortage continued to ease, said the CADA. The market demand growth was still curbed by the greater efforts to prevent and control the coronavirus pandemic. In addition, the sale promotion for the Double 11 shopping festival and the year-end sprint, as well as the Auto Guangzhou and the market launch of new models will be all conducive to car sales increase. Combining those factors, the association expected China's vehicle sales in Nov. to edge up from Oct., while slump year on year.

The number of models available for sale is increasing as dealers are supplementing their inventories amid the gradual rebound of auto parts supply. Nevertheless, consumers still need wait one to two months to get some hotter-selling models.

In November, the VIAs of the imported & luxury brands, the mainstream joint-venture brands, and the Chinese indigenous brands reached 51.3%, 54.8%, and 55.6%, rising 0.7, 2.7, and 1.6 percentage points over a month ago respectively, according to the CADA.