According to the China Automobile Dealers Association, sales of used mini vehicles in China fell for the fifth consecutive month in November, down 12% to 1.14 million units.
Overall, the market will shrink by 7.9% to 12.88 million units in 2022. It was his second contraction the market has experienced since the trade group began tracking used car trades in the late 1990s.
CADA attributes the decline in trading volumes in December and 2022 to the negative impact of the resurgence of the coronavirus in China.
The pandemic triggered a snap lockdown for most of last year. On December 7, the Chinese government abruptly abandoned its zero-COVID policy, causing an explosion of virus infections across China.
Citing the latest research, industry groups say 26% of used car dealerships closed for a cumulative 30 to 50 days last year due to the coronavirus pandemic, and 23% closed for more than 50 days. said he did.
As a result, about 60% of used car dealers were unprofitable last year.
In 2020, China’s used light vehicle sales fell 2.6% to below 11.13 million units after the first reported coronavirus outbreak in central Wuhan in the first quarter.
This was the first contraction the market suffered, according to CADA’s tally.
In 2021, the market will recover 26% to 13.98 million after Beijing largely contained the virus outbreak through lockdown and strict travel restrictions.