Core Viewpoint - The second-hand car market in China is showing signs of recovery, with daily transaction volumes reaching a peak since June, indicating a stabilization and upward trend in the market [1] Market Performance - From August 4 to 10, 2025, the average daily transaction volume in the second-hand car market was 65,300 units, reflecting a month-on-month increase of 2.1% and a year-on-year increase of 1.4% [1] - 32.6% of car dealers reported improved offline customer traffic, and over 35% of businesses experienced weekly growth in transaction volumes [1] - There is a notable increase in dealer inventory levels in preparation for the "Golden September" sales season [1] Pricing Trends - 60% of companies maintained stable end prices, while 19% reported slight increases in terminal selling prices, indicating a positive trend towards market recovery [1] Policy Environment - Local governments are steadily implementing market stimulus policies, with the third batch of subsidy funds allocated in late July 2025 and some regions restarting trade-in policies with innovative subsidy forms [1] - These policy incentives are expected to further boost the growth rate of the second-hand car market in August [1] Segment Analysis - The market for second-hand new energy vehicles is performing well, significantly reducing the purchase and usage costs for ordinary consumers [1] - From January to June 2025, the transaction volume of second-hand new energy vehicles reached 686,500 units, a year-on-year increase of 35%, accounting for 9.07% of the total second-hand passenger car transactions [1]

Core Insights - The second-hand car market in China is showing signs of recovery, with average daily transaction volume reaching 65,300 units during the week of August 4-10, 2025, marking a 2.1% increase from the previous week and a 1.4% year-on-year increase compared to July 2025 [1][2] Market Performance - 32.6% of car dealers reported improved offline customer traffic, and over 35% of businesses experienced weekly transaction volume growth [2] - 60% of companies maintained stable end prices, while 19% reported slight increases in end prices, indicating a recovery phase for the industry [2] Policy Impact - Local governments are steadily implementing market stimulus policies, with the third batch of subsidy funds allocated in late July 2025, and some regions restarting trade-in policies with diversified subsidy forms [2] - The release of policy benefits is expected to further boost the growth of the second-hand car market in August 2025 [2] Segment Analysis - The second-hand market for new energy vehicles is performing well, with transaction volume reaching 686,500 units from January to June 2025, a 35% year-on-year increase, accounting for 9.07% of total second-hand passenger car transactions [2] Regional Performance - The North China, East China, and Central South regions showed varying degrees of growth in second-hand car transaction volumes, while the Northeast and Southwest regions experienced declines [5][6][7] - East China recorded an average daily transaction volume of 23,100 units, with notable growth in cities like Xiamen and Hangzhou, both exceeding 20% [5] - North China saw an average daily transaction volume of 2,600 units, with Tianjin's market growth exceeding 20% [5] - The Northeast region's average daily transaction volume decreased by 4.59%, with Dalian's market down by 10% [6] - The Southwest region's average daily transaction volume fell by 2.5%, with significant declines in cities like Kunming [6] - Central South region's average daily transaction volume increased by 4.43%, with Wuhan's market growing over 20% [7] - The Northwest region's market remained stable, with an average daily transaction volume of 1,100 units [7]