Core Viewpoint - The second-hand car market in China is experiencing growth, with significant potential for future development, particularly in the context of the rising popularity of electric vehicles [1][5]. Market Overview - In July 2025, the national second-hand car transaction volume reached 1.66 million units, a month-on-month increase of 0.2% and a year-on-year increase of 3% [1][5]. - From January to July 2025, the cumulative transaction volume was 11.23 million units, a year-on-year increase of 2%, while the transaction amount was 729.2 billion yuan, a slight decrease of 0.1% [1][5]. Industry Growth - The second-hand car market is recovering, with various local traffic management departments facilitating transactions and improving circulation [1][2]. - The market is still in a rapid growth phase compared to developed countries, indicating substantial future potential [1][5]. Transaction Structure - The transaction structure shows a growing preference for SUVs and MPVs, while the market for passenger cars is becoming more high-end [6][7]. - In July 2025, the proportion of cars aged 3-6 years accounted for 45% of transactions, indicating a trend towards newer second-hand vehicles [7][8]. Price Trends - The average transaction price of second-hand cars is trending towards mid-to-high-end models, with a notable increase in the proportion of cars priced between 80,000 to 150,000 yuan [13][17]. - The market for second-hand electric vehicles is also growing, with a significant increase in transaction volume and penetration rate [14][15]. Inventory and Turnover - The inventory pressure in the second-hand car market is gradually improving, with a notable decrease in the proportion of cars held for over 30 days [22]. - The turnover rate for second-hand cars has increased, reaching a historical high of 30.4% in Q3 2025 [19][20]. Future Outlook - The potential for growth in the second-hand car market remains strong, particularly with the ongoing development of electric vehicles and favorable government policies [1][18]. - The market is expected to continue evolving, with increasing consumer interest in newer, more efficient vehicles [24].

Core Insights - The second-hand car market in China is experiencing significant growth, with a transaction volume of 1.6575 million units in June 2025, reflecting a 3% month-on-month increase and a 9% year-on-year increase, while the transaction value reached 106.8 billion yuan, up 9.2% year-on-year [1][5] - The cumulative transaction volume for the first half of 2025 reached 9.57 million units, showing a 2% year-on-year increase, although the transaction value slightly decreased by 0.3% to 623.2 billion yuan [1][5] - The market is still in a rapid growth phase, with significant potential for future development, especially in the context of the increasing popularity of new energy vehicles (NEVs) [1][5] Market Development - The second-hand car market is recovering and returning to a fast growth trajectory, with the first half of 2025 showing a notable increase in transaction activity compared to previous years [2] - The transaction structure is evolving, with a growing proportion of newer vehicles (under 6 years old) being sold, indicating a shift towards higher quality and newer models in the second-hand market [7][10] Transaction Volume and Value - In June 2025, the monthly transaction volume was 1.6575 million units, with a cumulative total of 9.57 million units for the first half of the year, while the transaction value for June was 106.8 billion yuan [4][5] - The average transaction price for second-hand cars is trending upwards, with a notable increase in the proportion of vehicles priced between 80,000 to 150,000 yuan [13][17] New Energy Vehicles (NEVs) - The transaction volume of second-hand NEVs reached 141,100 units in June 2025, marking a 64% year-on-year increase, with a cumulative total of 686,500 units for the first half of the year [14] - The penetration rate of second-hand NEVs has risen significantly, from 3.6% at the end of 2022 to 11.3% by June 2025, indicating strong market demand [14] Vehicle Age Structure - The proportion of second-hand cars aged 3 years or less has increased to 27% in the first half of 2025, while vehicles aged 3-6 years accounted for 45.3% [7][15] - The market is seeing a decline in the transaction volume of older vehicles (over 10 years), which suggests a preference for newer models among consumers [7][10] Price Trends - The average price of second-hand NEVs is increasing, with a significant rise in the share of vehicles priced between 80,000 to 150,000 yuan, while the share of vehicles priced below 30,000 yuan is decreasing [13][17] - The depreciation rates for NEVs are stabilizing, with the three-year retention rate for NEVs showing signs of improvement as the market matures [23][24] Inventory and Turnover - The turnover rate for second-hand cars is improving, with the proportion of vehicles in inventory for over 30 days decreasing, indicating a healthier market dynamic [21][22] - The transfer rate of second-hand vehicles has reached a historical high of 30.1% in the second quarter of 2025, reflecting increased market activity and improved transfer processes [19][20]

Core Insights - The second-hand car market in China showed moderate growth in June 2025, with a transaction volume of 1.6575 million units, reflecting a month-on-month increase of 3.34% and a year-on-year increase of 9.12% [1][3] - The total transaction amount for June reached 106.839 billion yuan, while the cumulative transaction volume for the first half of 2025 was 9.5701 million units, representing a year-on-year growth of 1.99% [1][3] Market Performance - The second-hand car market experienced a stable performance in June, attributed to a stable pricing system in the new car market and a reduction in promotional models, which positively impacted the second-hand market [3] - The average inventory cycle for June extended to 43 days, with 35.6% of companies facing inventory cycles exceeding 30 days, indicating increased operational pressure on dealers [5] Segment Analysis - In June, the transaction volume for basic passenger cars was 922,700 units, with a month-on-month increase of 2.22% and a year-on-year increase of 5.80% [8] - The MPV segment saw a significant year-on-year growth of 15.27%, while commercial vehicles also performed well, with a 17.17% increase in the transaction volume of cargo vehicles [8][9] Regional Insights - The East China region led the growth with a transaction volume of 471,900 units, a month-on-month increase of 3.03%, particularly driven by Shanghai's impressive growth of 6.8% [15] - The North China region showed a notable recovery, with a transaction volume of 255,000 units, reflecting an 8.83% month-on-month increase, especially in Beijing, which grew by 18.6% [16] Usage Age Analysis - In June, vehicles aged 3-6 years accounted for 42.23% of transactions, while vehicles under 3 years old saw a growth trend, indicating a shift in consumer preferences [12] Cross-Regional Flow - The second-hand car transfer rate was 29.52%, showing a slight decrease from the previous month but a year-on-year increase of 1.1 percentage points, with a total transfer volume of 489,200 units [20]

Core Insights - The second-hand car market in China is experiencing a short-term recovery in transaction volume, with a daily average of 64,600 vehicles sold from June 9 to June 15, 2025, reflecting a week-on-week increase of 3.31%, although it is still down 1.8% compared to the same period last month [1][2] Market Performance - Over 15% of second-hand car dealerships reported improved customer traffic compared to the previous week, and nearly 20% noted better sales volume, indicating a rise in consumer purchasing intent [2] - The average transaction price remains stable, with over half of the dealerships maintaining the same price levels as the previous week, suggesting a new equilibrium in the market [2] Regional Analysis - The second-hand car transaction volume increased across all six major regions, with notable growth in Northeast, Northwest, and Central South regions [5][6][7] - In East China, the daily average transaction volume reached 21,300 vehicles, up 2.43% week-on-week, with cities like Shanghai and Xiamen showing over 20% growth [5] - The North China region saw a daily average of 2,500 vehicles sold, with significant increases in cities like Taiyuan and Bayannur, where transaction volumes grew by 19% and over 25% respectively [5][6] Emerging Trends - The rapid rise of the second-hand electric vehicle market is becoming a new growth point, with the penetration rate reaching 8.8% in April 2025 [2] - To promote sustainable development in the second-hand car market, there is a need to establish a market ecosystem centered on integrity, including third-party inspection systems and improved after-sales services [2]

Financial Data and Key Metrics Changes - In Q1 2025, the company achieved a retail transaction volume of 7,545 units, representing a 142% year-over-year increase, but a 12% decline sequentially due to seasonal slowdown [5][12] - Retail revenue for the quarter was RMB 470 million, a 73% increase year-over-year and a 16% decrease quarter-over-quarter [12] - The average selling price (ASP) for retail vehicles was RMB 62,000, down from RMB 86,000 in the same period last year, reflecting a strategic focus on more affordable inventory [13] - Total revenue for the quarter, combining retail and wholesale, was RMB 504 million, a 58% year-over-year increase and a 16% decline sequentially [14] - Gross margin for the quarter was 7%, up 40 basis points from 6.6% a year ago, indicating stable margins over the last three quarters [14] Business Line Data and Key Metrics Changes - The wholesale transaction volume was 719 units in Q1, down 23% year-over-year and 19% quarter-over-quarter [14] - The company expects retail transaction volume in Q2 2025 to be between 10,000 and 10,500 units, representing over 140% year-over-year growth [15] Market Data and Key Metrics Changes - The company has expanded its market presence in Xi'an and Hefei, with local market share exceeding 15% [6] - The new store in Wuhan, a significant automotive hub, has shown strong initial customer response, with retail volume reaching approximately 1/3 of the combined sales of the two existing stores [9][10] Company Strategy and Development Direction - The company aims to scale up inventory and drive further sales growth in its core markets while contributing positive cash flow to support business expansion [7] - Plans to open two to three new superstore locations later this year are in place, alongside continued growth at existing stores [10][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the impact of price competition in the new car market on the used car business but believes the current pricing pressure is manageable and short-term [19][22] - The company is actively tracking the growth of the NEV segment, which currently represents about 9% of its retail unit sales, reflecting over 100% year-over-year growth [26][27] Other Important Information - The company has maintained a disciplined inventory management approach, with turnover days capped around 30 [6] - The net promoter score of 65 indicates a strong customer experience, one of the highest in the industry [6] Q&A Session Summary Question: Impact of new car price wars on used car business - Management noted that while price competition in the new car market creates some pressure on used vehicle pricing, they have a mature strategy to navigate these challenges and maintain inventory turnover [19][20][22] Question: NEV transactions growth and future plans - Management confirmed that NEVs accounted for approximately 9% of retail unit sales, with plans to embrace the structural evolution of the auto market as EVs continue to expand [25][27]

Core Insights - The second-hand car market in China is experiencing a short-term decline in trading activity, with average daily transactions dropping to 62,500 units, a decrease of 2.12% week-on-week and 3.5% compared to early May [1][4] - Despite current challenges, the long-term potential for the second-hand car market remains significant, driven by the rapid growth of the new energy vehicle market, which offers low-cost advantages for consumers [1][4] Weekly Trading Trends - The average daily transaction volume for second-hand cars has continued to decline, with only the southwestern region showing a slight increase, while other regions experienced varying degrees of decline [6][7] - In the East China region, the average daily transaction volume was 20,800 units, down 3.55% week-on-week, with major cities like Shanghai and Jinan seeing declines exceeding 20% [6] - The North China region reported an average daily transaction volume of 2,400 units, down 3.45%, with cities like Taiyuan experiencing significant drops [6][7] Regional Analysis - Northeast China saw an average daily transaction volume of 2,200 units, down 4.26%, with cities like Jixi and Jinzhou facing declines over 20% [7] - The southwestern region reported an average daily transaction volume of 13,300 units, up 6.14%, with Chengdu and Chongqing showing notable increases [7] - In Central South China, the average daily transaction volume was 22,900 units, down 3.28%, with Haikou experiencing a significant drop of 21.7% [8] - The Northwest region had an average daily transaction volume of 900 units, down 5.26%, with cities like Wuzhong and Bazhou seeing declines over 20% [8]

Core Viewpoint - The Chinese used car market is experiencing significant growth, driven by consumer demand for transparency in vehicle conditions, warranty issues, and improved after-sales services, as well as supportive government policies aimed at enhancing consumer confidence and market efficiency [1][10]. Group 1: Market Growth and Consumer Concerns - In the first four months of this year, China's automobile production and sales both exceeded 10 million units for the first time in history, indicating a robust new car market alongside a growing interest in the used car sector [1]. - Consumers express concerns about purchasing used cars, particularly regarding the condition of the vehicles and the risk of buying "lemon cars" that may look good but have hidden issues [2][3]. - The demand for transparency in vehicle conditions is crucial for consumer confidence, with many preferring to buy from reputable dealers who provide detailed vehicle history and inspection reports [3][4]. Group 2: Regulatory and Industry Developments - The Chinese government has implemented policies to enhance information sharing in the automotive sector and support the development of third-party used car information platforms, which aim to facilitate trustworthy transactions [4]. - The introduction of independent third-party assessment agencies and platforms has increased the availability of vehicle history reports, helping to reduce trust issues in used car transactions [3][4]. Group 3: Warranty and Insurance Issues - The entry of electric vehicles (EVs) into the used car market has raised concerns about warranty and insurance coverage, particularly since many manufacturers offer lifetime warranties only to the first owner [5][6]. - Some manufacturers are beginning to address these concerns by offering warranty solutions that are not tied to the first owner, allowing for better protection for subsequent owners [5]. - Insurance companies are also adapting to the unique risks associated with used EVs, with some consumers facing higher premiums due to concerns over battery degradation and repair costs [6]. Group 4: After-Sales Service and Consumer Protection - The used car market is evolving to include better after-sales service guarantees, with regulations requiring dealers to provide quality assurance and service commitments to buyers [7]. - Major automotive brands are enhancing their offerings by providing certified used cars with comprehensive warranties and after-sales support, which helps to build consumer trust [8]. - The overall improvement in transparency regarding vehicle conditions, warranty coverage, and after-sales services is expected to reduce consumer risks and enhance the buying experience in the used car market [9]. Group 5: Future Outlook - The used car market is projected to continue its growth, with expectations of surpassing 20 million transactions this year, supported by favorable policies and increasing consumer demand [10][11]. - The transition from a new car market to a more mature used car market is seen as a natural progression, with the potential to stimulate new car sales and contribute to a more sustainable automotive ecosystem [10].