China s domestic car market accelerating recovery chinadaily.com.cn | Updated: 2021-03-04 15:24 Share CLOSE People visit the 18th Guangzhou International Automobile Exhibition at the China Import and Export Fair Complex in Guangzhou, South China s Guangdong province, Nov 29, 2020. [Photo/Xinhua]
The domestic car market is accelerating its recovery, with vehicle inventory falling nearly 30 percent last month, National Business Daily reported.
According to the China Automobile Dealers Association, the auto dealer vehicle inventory alert index stood at 52.2 percent in February, down 29 percent year-on-year and 7.9 percent from the previous month.
The index reflects inventory pressure for automobile dealers. It typically is lower than 50 percent when the market is healthy. It is composed of inventory, market demand, dealership finances and surveys of dealers purchases, sales and stocks.
China Automotive Distribution and Aftermarket Industry Report, 2020-2026
March 04, 2021 08:08 ET | Source: Research and Markets Research and Markets Dublin, IRELAND
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Since 4S store model was introduced in China at the end of the 20th century, China s authorized dealer system has made a shift from single stores to corporate operation and from extensive management to fine management.
For the upstream raw materials, components suppliers provide an array of components to automakers; at the midstream end are automakers which take on design, R&D, manufacture and branding; dealers are downstream players responsible for selling new vehicles and offering aftermarket services. In the whole industry chain, automakers that manage dealers by authorization and rebate policy play a dominant role and have a big say.
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HONG KONG, Jan 18 (SCMP): The coronavirus presented affluent families in China with a new challenge last year: just how were they going to spend some 350 billion yuan (US$54 billion) of disposable income on luxury items like jewellery and watches with overseas travel and shopping virtually impossible.
“Before the outbreak, we would travel abroad a lot every year, or even live for a while away from the mainland. Last year I turned to shop more for watches, diamonds and gold to compensate for the regret for not being able to travel abroad,” said Rachel, who lives in the southern city of Shenzhen with her husband who runs an e-commerce company.
China Wants to Build a $306 Billion Used-Car Market From Scratch
Bloomberg 1/6/2021 Katrina Nicholas
(Bloomberg Businessweek) Although China has more than 270 million vehicles on its roads, only an estimated 15 million secondhand models were sold in 2019. That’s in sharp contrast to places such as Australia, the U.K., and the U.S., where people buy more used cars than new ones. So policymakers, intent on stimulating domestic consumption, want to change that. China is aiming to double the size of its secondhand-car market to about 2 trillion yuan ($306 billion) by 2025. To get there, Beijing has slashed taxes on used-car dealers, in May reducing the levy to 0.5% from 3% far less than the 17% tax on new vehicles. It’s also making it easier for dealers to trade used cars among themselves by classifying a secondhand vehicle without a license plate as a commodity rather than a personal asset, which simplifies the transaction. “The used-car-trading business i