Core Insights - The second-hand car market is facing significant challenges despite the influx of vehicles due to government policies promoting vehicle replacement, leading to a shift from quantity accumulation to quality enhancement in the industry [2][5] - The industry is at a crossroads, grappling with issues such as price competition, lack of transparency, and the need for new profit models [3][4] Industry Challenges - In 2024, only 3 out of 16 listed second-hand car companies reported profit growth, while 8 companies faced losses, indicating a tough market environment [3] - The cumulative transaction volume of second-hand cars in the first five months of the year reached 7.91 million units, showing a slight year-on-year increase of 0.62%, but growth is slowing [3] - Key challenges include difficulties in acquiring vehicles, maintaining value, selling cars, and slow turnover, exacerbated by intense competition from the new car market [3][4] Trust and Transparency Issues - Many second-hand car operators have historically compromised on integrity, leading to issues like misrepresentation of vehicle conditions and high transaction costs [4] - The lack of a unified and rigorous vehicle condition assessment standard hampers the development of a trustworthy market [4] Path to Transformation - The industry is exploring diverse strategies to overcome challenges, including enhanced marketing through live streaming and improved customer service offerings [5][6] - New business models are emerging, such as manufacturer replacement services and digital solutions that enhance transaction transparency [6][7] Ecosystem Reconstruction - The industry is shifting from a competitive to a collaborative ecosystem, emphasizing integrity and sustainable growth [7][8] - Initiatives like the "行" certification aim to standardize vehicle condition assessments and improve consumer trust [7] - Financial and policy support is crucial for sustaining the market's growth and innovation [8]