3 thoughts on “Overview of the development of the used car market”

  1. 1. The amount of car ownership continues to increase, and the second -hand car market has risen.
    The car ownership in my country has accumulated a huge base, laying a strong foundation for the development of the used car market. According to the annual bulletin data released by the National Bureau of Statistics, at the end of 2019, the national car ownership was 254 million (261.5 million civilian vehicles were reduced to 7.62 million vehicles and low -speed trucks). The amount of preservation is only more than 20 million less than the United States, while the trading volume of second -hand cars is 25 million. Of course, due to the influence of various factors, my country’s preservation rate is difficult to reach the level of developed countries in a short time. However, this just shows that my country’s used car market has huge growth potential.

    2, the second -hand car ecosystem gradually forms our observation. When the market needs, some companies that distribute around the car sources have begun to appear and achieved rapid development. Their operating model is to concentrate from leasing companies, financial companies, and travel companies, and then distribute to many second -hand car dealers who have close cooperation, and obtain economic benefits through preparation and supply chain finance. In addition, a large number of second -hand car sources are scattered in the hands of individual consumers, and the cost of obtaining these scattered sources is not easy to solve. There are also a number of enterprises through e -commerce service models to carry out the C2B business and develop rapidly. Of course, the traditional B2B e -commerce platform is also reinforcing the existing businesses and becoming an integrated provider for used car sources. The industry chain of used cars is gradually forming the industrial chain of a professional acquirer-auction wholesaler-retailer.
    3. From the perspective of market operation, the characteristics of speed -up are as mentioned above. In 2019, the used car market began in September, and the transaction volume growth continued to exceed 7%. If this situation continues, it is expected to restore vitality in 2020 to vitality Essence However, due to the Spring Festival holiday in January 2020, the effective working time will be shortened, which will affect second -hand car transactions. The more serious factor is the sudden epidemic situation, which caused the second -hand car market to stop. In February, the epidemic resistance was concentrated. Most companies did not return to normal work, and the transaction data would be difficult to see. Even if the epidemic is controlled in March, the second -hand car market order will gradually recover. In this sense, the trading volume of used cars in the first quarter of 2020 may have a large increase in negative growth, and it is expected to decline by about 40%. However, after the market recovery, there will be a process of replenishment in the second half of the year. There should be no major suspense for overall growth throughout the year. Without the emergency factors of the epidemic, the running map of the used car market has shown the characteristics of acceleration.

    4, the export of second -hand car exports will have a process from exploring to practice
    In April 2019, the Ministry of Commerce jointly issued the “Regarding the support of supporting in regions of conditions in mature conditions. “Notice of the second -hand car export business”, Beijing, Tianjin, Shanghai and other 10 provinces and cities have carried out pilots of used car export business. On July 8th, the e -commerce platform Youxin Group ’s nationwide used car exported to Poland, which opened the prelude to the export of used cars. About 40 pilot enterprises across the country successively organized vehicle sources to send them to the Belt and Road countries. Although the number of exports throughout the year in 2019 is not large, it is far -reaching.

    5, the industry continues to strengthen the transparent use of used car transactions
    The friends in the industry may pay attention to each car brand, each e -commerce platform or a second -hand car dealer who wants to be a brand, And third -party appraisal agencies are promoting how many tests they have. Many institutions use the test project as a selling point. What is more outrageous is that the most detection and evaluation agency has made 1058 tests, becoming a joke in the industry. To this end, the China Automobile Circulation Association coordinates the professor of the industry, industry experts, and third -party inspection agencies, e -commerce platforms, etc. to form a used car appraisal evaluation standard work group, with national standards “Second -hand Car Appraisal Evaluation Specifications” as the blueprint and researched the discuss Following the standardized test and evaluation report of market needs and industry use for the use of the entire industry to form a “Mandarin” in the second -hand car market. At the same time, the quality testing of used cars promoted by the China Automotive Circulation Association- “line” certification is also in the popularization of the full map. The purpose is to transparent transactions, providing a reassured environment for consumers to buy and sell second -hand cars.

    6, the policy environment of the used car is expected to improve
    The advancement of second -hand car VAT reform, although it is slow, it is not hopeless. Everyone knows that VAT legislation is underway, and second -hand cars have been managed as assets and have not been included in the sequence of commodity. When the second part mentioned the issue of the temporary registration system for the establishment of a used car, it was also mentioned that the second -hand car export registration has begun to be tried, and it is expected to promote implementation in second -hand car transaction registration. If according to second -hand export registration ideas, for the second -hand car registration of the circulation link, it will naturally have the product attribute. Essence Of course, this also requires the work of the entire industry to work together. In short, the “three big mountains” that have troubled the industry for many years in 2020 are expected to have a turnaround, and the second -hand car market policy environment has been changed.

    7, new energy used cars have also received high attention of society
    In December 2019 preservation rate data released by the China Automotive Circulation Association, the average 3 -year retention rate of new energy vehicles is about 35%, and while The preservation rate of ordinary cars is generally above 60%, and Toyota and Honda even exceed 70%. Then how to detect and evaluate new energy vehicles, because there is no standard that can be followed, companies engaged in new energy used cars can only collect and sell cars. Therefore, the problem of new energy used cars has also caused great obstacles to the consumption of new energy vehicles. In order to solve the problems in the circulation of new energy used cars, the China Automobile Distribution Association organizes experts, new energy research and development, production, sales, used cars, and upstream and downstream enterprises in the industrial chain. , Organized the development of the group standard “Technical Specifications for Electric Passenger Car Appraisal Evaluation” to guide the second -hand car operation of the first -tier enterprises. From the body, battery, motor, electrical control, etc. from the body, battery, motor, electrical control, etc., the quality of new energy used cars has more detailed regulations. It is expected that the implementation can be released in the first half of 2020.

  2. From 2015 to 2019, my country’s used car transaction volume showed an upward trend, and the growth rate showed a downward trend. From January to November 2020, the cumulative transaction volume of the nationwide used car market was 12.3335 million, of which only low-speed car truck transactions increased from the same period last year. From the perspective of regional distribution, the nationwide used car market transactions are mainly distributed in provinces and cities in eastern regions such as Guangdong, Zhejiang. From the perspective of the value preservation rate, the preservation rate of most of the subdivided models in December 2020 has recovered from November. From the perspective of brands, the mainstream overseas brand’s value preservation rate is still slightly higher than the independent brand.
    The second-hand car transaction volume has declined, and the market transaction volume declines in market segments
    2015 to 2019. The cumulative transaction volume of second-hand cars in my country generally increased year by year, with an average annual compound growth rate of 12.2%. In 2019, the cumulative transaction volume of used cars across the country was 14.928 million units, an increase of 7.96%year -on -year, and the growth rate fell. From January to November 2020, the cumulative transaction volume of the nationwide used car market was 12.3335 million, a year-on-year decrease of 4.55%.
    It from January to November 2020 due to factors such as the epidemic, only low-speed trucks increased slightly compared with the same period in 2019. The remaining models decreased significantly compared with the same period, and the cumulative decline in January to October narrowed. From January to November 2020, the basic type of passenger car traded a total of 7.5484 million units, a year-on-year decrease of 1.10%; passenger cars were 1.096 million units, a year-on-year decrease of 14.03%; 1.1752 million vehicles, a year-on-year decrease of 4.56%; SUV 1.1987 million, A year -on -year decrease of 6.76%; MPV 733,400 units, a year -on -year decrease of 13.85%; cross -type passenger vehicles were 301,500, a year -on -year decrease of 8.21%.
    Note: Data as of January to November 2020, the same.
    The second -hand car transaction is mainly distributed in provinces and cities in eastern regions such as Guangdong, Zhejiang, CR10 reaches 65.88%
    In area distribution, my country’s used car market is mainly distributed in the eastern region. It is 65.88%. From January to November 2020, the second-hand car market in Guangdong Province traded a total of 1.807 million units, accounting for 14.3%of the national transaction volume; Zhejiang and Shandong Province traded 1.854 million vehicles and 1.053 million vehicles, accounting for 9.38%of the national transaction volume. And 8.33%.
    The value preservation rate of subdivided models has rebounded slightly. The mainstream overseas brand value preservation rate is slightly higher than the independent brand
    If according to the China Automobile Circulation Association and the real estimate of the “December 2020 China Automobile Reservation Rate in December 2020 The Research Report shows that the increase in demand for vehicles in winter and the factors that overlay the price increase at the end of the year jointly leads to the “volume and price rising” of second -hand cars in December.
    From the perspective of the model, due to the high unit price of SUVs above the model, it is not the mainstream of the market at this time. Its price decreased side reflects low -cost models in the second -hand market, and cars are still mainstream. The problem of SUV emissions and fuel consumption above medium or higher also limits its market space.
    Note: The value preservation rate in the figure is 3 years of car -age preservation rate, which is the same.
    The brand price in December 2020, the overall price of the market has risen. Regardless of the virtue, Japanese, and Korean used car preservation rates are rising. Among them, Toyota Honda’s value preservation rate exceeds 75%. Ten mainstream overseas brands have a value preservation rate between 58%-80%. Among the independent brands, GAC Trumpchi has become the only brand in the list with a decline in value preservation rate, ranking among the top ten independent brands between 54%-68%.
    -For more data, please refer to the “Insight Report on Market Demand in China’s Used Car Industry”

  3. Major listed companies in the second -hand car industry: Jintu (002488), Shanghai Material Trade (600822), Dandong (600327)
    Core data of this article: used car transaction volume, second -hand car transfer ratio, China used car financial penetration
    The second -hand car transaction has a high popularity, and transactions have shown an upward trend.
    In recent years, my country’s used car transactions have been active. China’s used car transaction volume has continued to increase for 18 consecutive years. 14.923 million units. However, due to the impact of the epidemic in 2020, China’s used car transaction volume fell for the first time. According to the statistics of the China Passenger Vehicle Market Information Federation, my country has completed a total of 14.34 million second -hand cars in China in 2020, a year -on -year decrease of 3.91%. In the first half of 2021, my country had completed a total of 84.342 million second -hand cars, a year -on -year increase of 52.89%. Even in the off -season sales of the automotive industry in June, the transaction volume of second -hand cars still increased by 4.43%.
    The relocation policy for second -hand car restrictions is conducive to the development of the second -hand car market
    The restricted vehicle relocation, and also inhibited the vitality of second -hand car consumption. In 2018, the government work report clearly demanded that the second -hand car restriction policy was fully eliminated, and then emphasized the reiteration through multiple documents. Local responses have been responded one after another, and second -hand cars have gradually taken shape.
    The year of the opening year of 20120, due to the dual influence of holidays and epidemics, the number of second -hand car rotation in February was the lowest point, only 14.86%. With the improvement of the prevention and control of the epidemic and the continuous advancement of resumption of work and re -production, the overall circulation of cross -regional circulation has shown a slow growth trend from the second quarter. From July to December, it is better than the same period in 2019. The proportion of second -hand car transfer in December was 28.88%, a new high of the year, and the transfer ratio increased by 3.77 percentage points compared with the same period in 2019. In 2020, the total number of second -hand car transfer was 3.938 million units, and the transfer ratio was 27.46%, a decrease of 0.41 percentage points compared with the same period in 2019.
    The second -hand car finance is lower than the United States, reflecting the larger growth space in my country
    In the context of consumption upgrade, used car transactions have grown at a high speed, and second -hand car finance is also waiting to fly. Compared with the financial penetration rate of second -hand cars in my country and the United States in 2019 (the total number of loans/total car sales), we can see that my country’s second -hand car financial penetration rate is far lower than that of developed countries. my country’s penetration rate is only 29%, while the United States is in 54%in 2015.
    Note: Second -hand car finance penetration = number of loan orders/total sales of second -hand cars
    The second -hand car finance in my country began to enter the standardized development stage. Looking forward to the future, under the new pattern of the “double cycle” of the Chinese economy and the new requirements of the “Fourteenth Five -Year Plan” development, the car circulation industry with used cars as the core as a key area for stable growth and expanding domestic demand will have important strategic significance. Therefore, in the “2021 China Second -hand Car Finance and Ecological Report”, it was mentioned that in 2020, my country’s second -hand car financial penetration rate reached about 30%, and it is expected to reach about 48%in 2025. According to the prediction of the analysis agency FROST

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