China Automobile Dealers Association said its dealer inventory warning index was
61.1% in July 2026, up 3.9 percentage points YoY and MoM and remaining above the
50% expansion-contraction threshold. Dealers expect August to remain seasonally
weak as nationwide heat suppresses showroom traffic and keeps consumers
cautious, though concentrated graduation and back-to-school demand should
provide some lift and sales are expected to be stronger than July.
