Dealership backlogs ease as 2022 ends

Stockpiles at new-vehicle stores across all brands fell to a 32-day supply last month from a 56-day supply in November as shoppers took advantage of tax incentives for gasoline-powered models and subsidies for electrified vehicles, according to the China Automobiles Dealers Association.

December inventories at stores marketing foreign mass-market brands producing in China slipped to 31 days from 66 days a month earlier, the trade group said this month.

Dealerships stocking luxury brands and imported vehicles saw their average stockpiles drop to 31 days from 47 days in November.

Backlogs at stores under Chinese brands decreased to 37 days from 51 days the previous month.

To boost the market following a sharp, pandemic-triggered contraction from March to May, Beijing on June 1 halved the purchase tax to 5 percent on gasoline vehicles with engine sizes of up to 2.0 liters and priced at 300,000 yuan ($44,418) or below. 

The tax cut expired at the end of December.

Another subsidy program, which the Chinese government launched in 2010 for buyers of full electric vehicles and plug-in hybrids, was also terminated at the year-end.