China's vehicle inventories remain high in August
Dealership stockpiles of imported vehicles in China rose slightly to a 77-day supply in August, up from 76 days in July, the China Automobile Dealers Association reported.
Inventories remain significantly above the ideal range of a 24- to 36-day supply -- evidence that car prices are likely to remain soft.
Among all brands, domestic or foreign, Jaguar Land Rover continued to have the biggest stockpile of unsold inventories with a 99-day supply in August, up from 89 days in July.
Jaguar Land Rover imports all vehicles that it sells in China. Its joint venture with state-owned Chery Automobile Co. has not yet launched production in China.
By contrast, dealerships that sell foreign-brand vehicles produced in China reported a backlog of 45 days, down from 47 days a month earlier.
Dealerships carrying domestic brands reported a 48-day supply, up from 47 days in July.
High inventories of unsold imports could force foreign automakers to cut prices. Adding to the pressure is China's National Development and Reform Commission, which is investigating allegations that foreign automakers charge artificially high prices for new cars and replacement parts.
This month, Audi was fined 259 million yuan ($42 million) and Chrysler received a fine of 31.7 million yuan.
In response to the antitrust probes, a number of foreign brands have cut prices of new cars and replacement parts.
Among all brands, domestic or foreign, Jaguar Land Rover continued to have the biggest stockpile of unsold inventories with a 99-day supply in August, up from 89 days in July.
Jaguar Land Rover imports all vehicles that it sells in China. Its joint venture with state-owned Chery Automobile Co. has not yet launched production in China.
By contrast, dealerships that sell foreign-brand vehicles produced in China reported a backlog of 45 days, down from 47 days a month earlier.
Dealerships carrying domestic brands reported a 48-day supply, up from 47 days in July.
High inventories of unsold imports could force foreign automakers to cut prices. Adding to the pressure is China's National Development and Reform Commission, which is investigating allegations that foreign automakers charge artificially high prices for new cars and replacement parts.
This month, Audi was fined 259 million yuan ($42 million) and Chrysler received a fine of 31.7 million yuan.
In response to the antitrust probes, a number of foreign brands have cut prices of new cars and replacement parts.
