On January 25th, Cui Dongshu, Secretary General of the China Passenger Car Association, stated that the national passenger car market is still in a strong destocking cycle this year, with active destocking continuing from the beginning of the year until August and passive destocking from September to December. After the expected easing of wait-and-see measures brought about by stimulus policies and the release of consumer enthusiasm driven by the trade in policy, manufacturers stabilized their production in December to cope with market risks, and the trend of new energy in December was good. At the end of December 2024, the national passenger car inventory was 3.05 million units, a decrease of 150000 units from the previous month, a decrease of 760000 units from December 2023, and a decrease of 530000 units from December 2022. The current policy withdrawal has led to overall caution among manufacturers, resulting in a relative slowdown in production before the end of the year. The current sluggish fuel vehicle market has led to overall caution among manufacturers, with production still contracting significantly before the year-end sprint. Due to the sales forecast for January to March 2025 being lower than the average for December 2024 to February 2025, the inventory at the end of December 2024 and the current inventory support for the next three months’ sales are expected to be 59 days, which is a significant decrease compared to 76 days in December 2022 and 70 days in December 2023. Overall inventory pressure is not significant.
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