Stockpiles at China’s new-car dealerships averaged 41 days in June, a decline from 52 days the previous month, reflecting the strong rebound in the overall market in the wake of coronavirus resurgence across the country.
The market rebounded after Shanghai lifted a two-month lockdown and the Chinese government enacted a six-month tax incentive for gasoline cars. But light-vehicle output remains limited and vulnerable because of widespread parts shortages, while shipping delays are also disrupting supplies.
Last month, vehicle supplied at stores marketing locally produced, foreign mass-market brands decreased to 42 days from 54 days in a month earlier, according to the tally of the China Automobiles Dealers Association.
The average backlog at dealerships stocking Chinese brands fell to 43 days from 54 days in May.
Inventories at stores distributing luxury brands and imported foreign brands dropped to 35 days from 42 days in May.