As anti-graft initiatives and a general slowdown push down the number of luxury imports, consumers are seeking more economic alternatives for vehicle purchase.
The car stockpile rises Image: autofan.com |
New vehicle stockpiles remained stubbornly high in China during June despite fierce sales campaigns across China’s dealerships. Showrooms stocking domestic brands averaged a 49-day inventory in June.
Chery and BAIC were the slowest selling, with a 95-day and 78 day supply, respectively. This is despite news that China's auto industry is the most profitable of all the nation's industries.
Foreign brands have also been slow to sell, with inventories creeping up to a 44-day supply in June, compared to 42 days just a month earlier. Accordingly, imports have also fallen by 11% in the first six months of the year to 526,000 cars. Most imported vehicles are luxury models, which may have seen sales slow due to the government crackdown on conspicuous corruption and a general economic cooling.
As luxury imports and new car sales wane, the used-vehicle car market is experiencing an upswing. 2,481,600 used vehicles were traded in the first six months, up 8% from the same period a year earlier.
Although the bus and truck trade actually decreased by 1% and 3%, respectively, the volume of used sedans traded rose 12% from a year earlier to 1,435,900 units.