On October 31, the China Automobile Dealers Association unveiled its most recent data, revealing that the auto dealer inventory alert index for October 2025 in China reached 52.6%. This marks a 2.1 - percentage - point increase on a year - on - year basis and a 1.9 - percentage - point decrease compared to the previous month. In the context of industry analysis, this index, which sits above the dividing line between prosperity and recession, actually signals an uptick in the vitality of the auto circulation sector. In Western business analysis, indices like these are crucial barometers for understanding market health. A higher index above a certain threshold can sometimes be misconstrued as a sign of over - supply, but in this case, it's more about the dynamic nature of the Chinese auto market. The auto circulation industry in China is going through a period of adjustment and transformation. The year - on - year increase could be attributed to various factors such as changing consumer preferences, new policy regulations, or increased competition among dealers. The month - on - month decrease, on the other hand, shows that the industry is gradually finding a more stable footing. Overall, this index provides valuable insights into the current state and potential future trends of China's auto circulation industry.