Used-vehicle sales shrink in Dec. to cap down year

Sales of used light vehicles in China declined for the fifth straight month in November, dropped 12 percent to 1.14 million, the China Automobile Dealers Association said this month. 

Overall, the market contracted 7.9 percent to 12.88 million in 2022. It was the second contraction the market has experienced since the trade group began tracking used-vehicle transactions in the late 1990s.

The CADA blamed the decline in December and 2022 volume on the negative impact from recurring coronavirus outbreaks in China. 

The pandemic triggered snap lockdowns for much of last year. On December 7, the Chinese government abruptly abandoned its zero-COVID policy, which unleashed an explosion of virus infections across the country.

Because of the pandemic, 26 percent of used-car dealerships suspended business for 30 to 50 days accumulatively last year while 23 percent closed stores for more than 50 days, the trade group said, citing results of its latest survey.

As a result, some 60 percent of used-car dealers were unprofitable last year, it noted.

In 2020, China’s used light-vehicle sales dipped 2.6 percent to below 11.13 million after the coronavirus outbreak, first reported in the central city of Wuhan, ravaged the country in the first quarter.

It was the first contraction the market suffered, according to the CADA’s tally. 

In 2021, the market rebounded 26 percent to 13.98 million after Beijing largely contained the virus outbreak with lockdowns and strict travel restrictions.