Car sales to enter off season

China's auto market will enter an off-season in July due to fewer customers and hot weather, according to a report by the China Automobile Dealers Association.

CADA also said customer demand will decrease in July as some regions adopted the stricter China VI emission standards on July 1. Some car dealers had promotions to clear out models built in accordance with China V emission standards in June, so many price-sensitive buyers have already bought cars last month. Also dealers made promotions to perform well in the half-year assessment. With the new standards in effect, sales in July are bound to fall. 

In the east, some dealers report a relatively low inventory level because of these clearances.

Compared with the China V standards, the new rules  allow substantially fewer pollutants such as nitrogen oxides and particulate matter.

"From a general perspective, car market drives into the off-season in July and August because the weather is hot," said Zhang Xiaofeng, an independent market analyst. "Dealers are not optimistic, with some saying demand and operating conditions will worsen."

The association suggested dealers estimate consumer demand based on the actual market situation and maintain reasonable inventories to prevent operational risks.

The association's report covered most dealers from the top 100 dealership groups with more than 1,000 outlets.