Shanghai (ZXZC)- China's vehicle inventory alert index (VIA), which reflects the inventory pressure on automobile dealers, edged up 1.8 percentage points month on month in November 2023, according to the China Automobile Dealers Association ("CADA").

The VIA stood at 60.4% in the 11th month of this year, dipping 4.9 percentage points from the previous year.

The automotive market in November maintained a stable upward trend, fueled by nationwide policies to boost car consumption and the "11.11" car-shopping activities, said the CADA. The first half of the month witnessed a relatively subdued growth in sales due to factors like the temporary absence of new policies from car manufacturers and local governments. However, the latter half, marked by the Auto Guangzhou 2023 unveiling numerous new models, saw an uptick in purchasing enthusiasm. As the year-end approaches, dealers actively replenish stock and intensify promotional efforts. The conclusion of the autumn harvest in China's northern regions has also led to increased demand from rural consumers. Overall, it is estimated that the retail sales volume of passenger vehicles in November would be around 2.05 million units.

In addition, continuous price declines for new cars have heightened consumer's wait-and-see sentiment, leading to increased foot traffic in dealerships but a decline in the transaction rate, somewhat impacting November's sales figures, the association added.

In November 2023, the VIAs of luxury & imported brands and mainstream joint-venture brands stood at 56.6% and 61.6%, edging down 0.4 and 0.3 percentage points over a month ago, respectively. Nevertheless, China's domestic brands saw their VIA in the same month grow 10.2 percentage points over a month earlier to 63.5%.