China Automobile Dealers Association: Automobile consumption index in October 2022 is 94.1

On November 1, 2022, the China Automobile Dealers Association released the latest "Automobile Consumption Index": the automobile consumption index in October 2022 was 94.1, higher than the previous month.

Recently, the epidemic has recurred in many places, and some cities have implemented lockdown management or stricter control measures, which has had a certain impact on the automobile market, resulting in the number of customers entering the store in the "Golden September and Silver October" period being lower than expected. According to this survey, nearly 70% of dealers believe that new car sales in October will not meet the expected target. Therefore, in order to minimize the impact of the epidemic on local economic activities, all localities have taken active actions. In addition to quickly deploying controls to curb the spread of the epidemic, they have also introduced a number of consumption promotion policies to stabilize the growth of the automobile market. At the same time, the automobile purchase tax reduction policy introduced earlier is nearing its end, and its role in promoting the increase in automobile sales will be more prominent. In addition, as November approaches the end of the year, dealers will carry out promotional activities in advance to increase sales in order to reduce the sales pressure of the annual task target. The above factors will lead to an increase in automobile sales, so as long as the epidemic can be effectively controlled, automobile sales in November will continue the previous growth momentum and achieve growth.

Automobile consumption index trend chart

Judging from the sub-indices that make up the automobile consumption index, the demand sub-index in October 2022 was 87.9, higher than the previous month. It is expected that the demand for car purchases will increase in November. The car purchase tax reduction policy is coming to an end in November, which will prompt some customers who were waiting and watching in the early stage to hurry up and buy cars. In some areas, the release of car purchase demand has been suppressed due to factors such as the recurrence of the epidemic and the lockdown management. If the epidemic can be effectively controlled in November, the overall demand for car purchases will be further improved.

Automobile Consumption Index-Demand Sub-Index

The store entry index in October 2022 was 91.1, higher than the previous month. It is expected that the number of car buyers in stores will increase in November. As November approaches the end of the year, dealers will carry out promotional activities of varying degrees to increase sales to reduce the pressure of the annual task target. In addition, the purchase tax reduction policy is about to end, which will attract more customers to enter the store to buy cars.

Automobile Consumption Index-Store Entry Index Trend Chart

The purchase sub-index in October 2022 was 98.7, higher than the previous month. With the continued efforts of promotional policies, the enhanced driving effect of the vehicle purchase tax reduction policy, and the increase in car demand, if the epidemic can be effectively controlled in November, car sales will continue to grow.

Automobile Consumption Index-Purchase Sub-Index Trend Chart

In summary, although the epidemic has risen in some areas recently, it is generally controllable, and the overall economy continues to recover. With the improvement of the economic situation, the halving of the purchase tax policy has entered its final stage, and dealers are rushing to increase sales at the end of the year, I believe that the auto market will continue to develop in a positive direction in November. However, dealers should also take into account the current situation of insufficient consumer confidence based on actual conditions, and carry out reasonable promotional activities on the premise of doing a good job in epidemic prevention to promote continued sales growth.