Core Insights - The second-hand car market in China is showing signs of stabilization and improvement, with a notable increase in transaction volume in June 2025 compared to previous months and the same period last year [1][2]. Market Performance - In June 2025, the national second-hand car transaction volume reached 1.6575 million units, representing a month-on-month growth of 3.34% and a year-on-year growth of 9.12% [1]. - From February to June 2025, the transaction volume consistently outperformed the same months in 2024, with year-on-year growth rates of 15.78%, 2.6%, 1.33%, 1.22%, and 9.12% respectively [1]. - The cumulative transaction volume for second-hand cars from January to June 2025 was 9.5701 million units, reflecting a year-on-year increase of 1.99% [2]. Inventory and Supply Chain - The improvement in transaction volume has led to enhanced inventory turnover efficiency, with 29.9% of companies having an inventory cycle of less than 15 days in June 2025, compared to only 10.5% in June 2024 [2]. - The average inventory cycle in June 2025 was 43 days, down from 56 days in June 2024 [2]. Market Trends and Consumer Behavior - The second-hand car market is expected to maintain a steady growth trend, with July 2025 projected to see transaction volumes around 1.65 million units, similar to June [3]. - The replacement rate in the industry remains above 60%, driven by government policies and consumer incentives, which has increased the supply of second-hand cars [3]. - The price stability in the new car market has positively influenced consumer expectations for second-hand car prices, potentially reversing the downward price trend [3]. Electric Vehicle Segment - The transaction volume of second-hand electric vehicles (EVs) reached 141,100 units in June 2025, marking a month-on-month increase of 16.7% and a year-on-year increase of 64% [6]. - The penetration rate of second-hand EVs has risen to 9.9% as of May 2025, up from 8% at the beginning of the year [6]. - The average retail price of second-hand EVs in the first half of 2025 was approximately 96,000 yuan, with popular models including Hongguang MINIEV, Model 3, and Model Y [6]. Price Dynamics - The average transaction price of second-hand EVs decreases significantly with age, with vehicles aged 1 year selling for 71% of the new car price, and those aged 5-6 years selling for only 31% [7]. - Concerns regarding battery performance are prevalent among consumers, particularly for lower-priced second-hand EVs [7]. Future Outlook - Industry experts express confidence in the second-hand car market for 2025, with a majority anticipating a transaction volume increase of up to 10% [4]. - The second-hand EV market is viewed as a significant growth area, although challenges such as low profit margins and market volatility remain [8].

Core Insights - The second-hand car market in China is showing steady performance with an average daily transaction volume of 65,000 units from July 21 to July 27, reflecting a month-on-month increase of 0.79% despite a year-on-year decrease of 1.9% compared to June [1] - The total transaction volume from July 1 to July 27 reached 1.48 million units, with an expected total for the month of around 1.65 million units, remaining stable compared to June [1] Market Dynamics - The new car market's stable pricing has stimulated consumer enthusiasm for trading in old cars, increasing market supply and stabilizing consumer expectations for second-hand car prices, which may reverse the downward price trend [2] - Despite being in a traditional off-season, the second-hand car market is expected to see a small consumption peak due to improved weather, increased travel demand, and upcoming holidays and promotional activities [2] Regional Performance - The East and Southwest regions are the main drivers of market growth, while the Northeast, North China, and Central South regions have shown slight declines [5] - In the East region, the average daily transaction volume reached 22,900 units, with a month-on-month increase of 4.62%, particularly in cities like Nanchang and Shanghai, which saw increases of 7.6% and 6.2% respectively [7] - The North region's average daily transaction volume was 2,500 units, showing a decrease of 3.56%, with Beijing experiencing a decline of 6.1% [7] - The Southwest region recorded an average daily transaction volume of 13,000 units, with a month-on-month increase of 2.59%, driven by growth in Chengdu and Chongqing [8] - The Central South region's average daily transaction volume was 23,300 units, reflecting a decrease of 2.77%, with notable declines in Guangzhou and Nanning [8] - The Northwest region's average daily transaction volume remained stable at 1,000 units, with significant declines in Bazhou and Xining, while Yulin showed strong growth [8]