China Automobile Dealers Association: July Auto Dealer Inventory Coefficient at 1.35, Down 10.0% YoY

　　On August 11, the China Automobile Dealers Association (CADA) released its July 2025 "Auto Dealer Inventory" survey results. The comprehensive inventory coefficient for auto dealers in July stood at 1.35, down 4.9% month-on-month and 10.0% year-on-year. While inventory levels remained below the warning line, they were still higher than the reasonable range. Based on statistics from CADA’s Passenger Vehicle Association, July’s passenger vehicle retail sales reached 1.826 million units, indicating total dealer inventory at approximately 2.47 million units by month-end.

　　CADA noted that the auto market in August is expected to remain stable overall. While flooding and extreme heat temporarily suppressed consumption, three key drivers—back-to-school season demand, promotional campaigns during regional car-buying festivals, and new model launches at autumn auto shows like Chengdu—are projected to drive slight month-on-month sales growth. CADA advised dealers to realistically assess market demand amid rising uncertainties, intensify promotions for trade-in and scrappage policies, boost consumer confidence through enhanced services, prioritize cost efficiency, and mitigate operational risks.