Used-car demand dips in August amid bad weather, regional coronavirus outbreaks

Sales of used light vehicles in China slid 1.2 percent from a year earlier to below 1.18 million in August, according to the China Automobile Dealers Association.

Showroom traffic at used-car stores last month was affected by heavy rainfall in south China, severe heat waves in a wide swath of the country and resurging coronavirus infections in northwest China, the trade group said this week. 

August demand for used crossovers and SUVs rose 12 percent to some 186,100, while deliveries of secondhand multi-purpose vehicles gained 2.9 percent to around 90,300.

By contrast, sales of used minibuses slipped 8.5 percent to roughly 31,700 while the volume of second-hand sedans dipped 3.7 percent to approximately 868,000.

Due to weak customer demand, used-car dealers carried an average 49-day supply of vehicles in August, roughly the same as the previous month.

In the first eight months, China’s used light-vehicle market shrank 6.7 percent to below 8.43 million, according to CADA’s tally.

With heat waves receding across the country and regional coronavirus outbreaks gradually easing, used-car sales will improve in September, the trade group predicted.