Inventories at Chinese new car dealers were well above normal levels in November as the coronavirus outbreak continued to curb showroom traffic and sales.
According to the China Automobile Dealers Association, the number of vehicle supply days in November for foreign mass-market brand new car dealers increased from 56 to 66 in October.
Vehicle inventories at stores selling Chinese brands stood at 51 days, up slightly from 50 days last month.
Dealers selling luxury brands and imported cars maintained 47 days of supply, unchanged from the previous month.
According to CADA’s tally, the average number of days stockpiled by new car dealers across all brands increased from 53 days in October to 56 days in November.
Since December 7, the Chinese government has largely repealed its zero-coronavirus policy implemented in early 2020. Pandemic rages across Chinadisrupting vehicle production, parts delivery and distribution.
To stimulate market demand for new cars amid a full-blown pandemic, 92% of new car dealers surveyed this month hope the government can extend tax incentives for petrol cars in 2023, CADA says. said.
On June 1, the purchase tax for gasoline vehicles with an engine size up to 2.0 liters and a price of 300,000 RMB ($43,041) or less was halved to 5%.
The tax cut will end at the end of this month.