China’s used-vehicle market has yet to recover from the lingering impact of the coronavirus outbreak that started in late January.
Used-vehicle sales across the country slipped 24 percent to roughly 950,000 in March, with year-to-date volume slumping 38 percent to some 2 million, according to the China Automobile Dealers Association.
With the epidemic largely brought under control in early March, more than 97 percent of used-vehicle dealerships had resumed operations by the end of the month, up from 44 percent at the beginning of March, the dealers association said.
To stimulate consumer demand, Beijing announced this month it will slash the value-added tax on used vehicles to 0.5 percent from 2 percent on May 1. The tax cut will remain in effect until the end of 2023.
Used-vehicle sales across China have grown steadily over the past two decades. Last year, volume rose 8 percent to top 14.9 million, following an 11 percent jump in 2018.