Inventory at new-vehicle stores in China remained well above normal levels in November as a new wave of coronavirus outbreaks continued to curtail showroom traffic and sales.
New-car dealerships that market foreign mass-market brands had a 66-day supply of vehicles in November, up from 56 days in October, according to the China Automobiles Dealers Association.
Stores marketing Chinese brands had a 51-day supply of vehicles, up slightly from 50 days a month earlier.
Dealerships marketing luxury brands and imported vehicles carried a 47-day supply, unchanged from the previous month.
Taken together, average stockpiles at new-car dealerships across all brands rose to 56 days in November from 53 days in October, according to the tally from CADA.
Since December 7, the Chinese government has largely scrapped a zero-Covid policy implemented in early 2020. The pandemic is raging across China, disrupting vehicle output, parts delivery and distribution.
To stimulate market demand for new cars amid the full-blown pandemic, 92 percent of new-car dealerships it surveyed this month hope the government can extend a tax incentive for gasoline cars in 2023, CADA said.
On June 1, the purchase tax was halved to 5 percent on gasoline vehicles with engine sizes of up to 2.0 liters and priced at 300,000 yuan ($43,041) or below.
The tax cut is due to expire at the end of this month.
