On July 31, the China Automobile Circulation Association released its latest “Dealer Inventory Warning Index.” According to the data, the index reached 57.2% in July 2025, up by 0.6 percentage points from June. This figure remains above the 50% threshold, signaling that the pressure in the car market is increasing. Fewer people are buying cars, and the market isn’t as active as it should be. As a result, dealers are facing mounting inventory pressure.
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