Core Insights - The domestic new car sales growth has exceeded 11% due to policies promoting vehicle trade-ins and scrappage, leading to a significant influx of used cars into the market [1] - In the first half of 2025, the cumulative transaction volume of used cars reached 9.57 million units, a year-on-year increase of approximately 2%, with total transaction value exceeding 600 billion yuan [1] - The auction format is increasingly being utilized to address the surplus of used cars, particularly for electric vehicles which are often sold in bulk [1] Used Car Auction Market - In 2024, traditional fuel vehicles accounted for over 1.11 million auction transactions, representing more than 90% of the market share, maintaining dominance in the auction market [1] - The auction volume of electric vehicle accident cars has seen a compound annual growth rate of 70% from 2019 to 2024, with expectations of at least a 50% growth rate over the next three years [2][5] Accident Vehicle Trends - Nearly 90% of accident vehicles are disposed of through auctions, with the auction volume of ordinary accident cars growing at a compound annual growth rate of 27% from 2019 to 2024, reaching 530,000 units in 2024 [4] - The auction volume of electric accident vehicles increased from 2,300 units in 2020 to 18,000 units in 2024, indicating a rapid growth in this segment [5] Pricing Dynamics - The average auction price for vehicles in 2024 was 40,000 yuan, reflecting a year-on-year decline of over 11%, with the transaction value growth rate lagging behind the volume growth [7] - The market is experiencing a polarization in pricing, with vehicles priced below 50,000 yuan accounting for 78.86% of total transactions, while the share of vehicles priced at 200,000 yuan and above has decreased to 2.42% [7] Vehicle Age and Market Composition - The share of vehicles aged over six years has increased, with over 70% of total transactions involving high-mileage vehicles, contributing to the overall decline in average vehicle prices [7] - The average auction prices for different age categories show a downward trend, with vehicles over ten years old averaging 21,400 yuan [7] Future Outlook - The auction market for electric vehicles is expected to grow, with a shift towards more refined dismantling processes for accident vehicles, including battery recycling and repurposing [6] - As the penetration rate of new energy vehicles increases, the volume of used electric vehicles entering the market is anticipated to rise, leading to changes in auction methods and service standards [8]