Core Insights - The increasing entry of electric vehicles into the used car market and the expiration of the 8-year warranty period have heightened consumer anxiety regarding battery lifespan [2][3] - Insurance companies and industry players are innovating products to alleviate concerns about battery longevity, with new insurance products like "battery degradation insurance" being introduced [3][4] - The introduction of battery degradation insurance aims to enhance consumer confidence in purchasing used electric vehicles, thereby improving transaction rates and vehicle resale values [3][4] Industry Developments - The China Banking and Insurance Regulatory Commission and other departments have issued guidelines to support the insurance industry in innovating products for electric vehicle insurance [2] - A recent launch event for "battery degradation insurance" was held by Haixia Insurance and Zhongqi Shubao, targeting six cities for regional promotion [4] - The insurance product covers over 95% of electric vehicle models, with specific conditions regarding battery health and vehicle age [4] Market Trends - The used electric vehicle market is experiencing rapid growth, with over 500,000 transactions in the first five months of the year, but challenges remain, particularly regarding battery health guarantees [3][10] - Platforms like Dongche Di are reporting significant increases in used electric vehicle sales, with a 120% quarter-on-quarter growth in the second quarter [10][11] - The market shows a strong preference for pure electric vehicles, with over 70% of transactions involving these models [13] Consumer Insights - Consumers are generally cautious about new battery insurance products, often concerned about stringent terms and potential difficulties in claims [4][7] - The lack of standardized battery degradation detection methods creates information asymmetry, making it difficult for consumers to assess battery health when purchasing used electric vehicles [13] - Initiatives like Guazi's "100-day battery buyback guarantee" aim to enhance consumer trust by providing a safety net for battery performance [13]

Core Insights - The used electric vehicle (EV) market in China is experiencing significant growth, with market penetration increasing from 3.6% at the end of 2022 to 6.7% by the end of 2023, and reaching 9.1% in April 2023, indicating substantial development potential [1] Market Growth - From January to April 2024, a total of 424,400 used EVs were traded nationwide, representing a 32.3% increase compared to the same period in 2023 [2] - Companies like Zhengzhou Dianka New Energy Co., Ltd. and Shenzhen Junzhiyi New Energy Co., Ltd. are successfully selling 80 and 50-60 used EVs per month, respectively, leveraging online platforms and brand marketing strategies [2] - The penetration rate of used EVs on platforms like Guazi exceeded 20% in 2024, reflecting a vibrant trading environment [2] Consumer Trends - The customer base for used EVs is younger and more internet-savvy, with preferences for budget, usage environment, and design [3] - The demand for transparency in pricing and high-quality after-sales service is increasing among consumers [3] Market Drivers - The sales of new energy passenger vehicles reached 4.351 million units from January to May 2024, marking a 34.1% year-on-year growth, with a retail penetration rate exceeding 52.9% for three consecutive months [4] - Favorable policies, such as the extension of vehicle purchase tax exemptions until the end of 2027 and ongoing trade-in incentives, are creating a conducive environment for the growth of the used EV market [4] - The government aims for a 45% increase in used vehicle transactions by 2027 compared to 2023 [4] Industry Landscape - The used EV sector is attracting various stakeholders, including automakers and battery manufacturers, with over 1 million related enterprises currently operating in China [5] - Most car manufacturers engaging in used EV transactions aim to boost new car sales and enhance residual values [6] Transaction Assurance - A recent survey indicates that consumers are increasingly concerned about after-sales service when purchasing used EVs, particularly regarding battery performance and maintenance costs [7] - Platforms like Guazi are implementing measures such as a "100-day battery buyback guarantee" to address consumer concerns and enhance service quality [7] - Recommendations for consumers include choosing reputable brands and reviewing vehicle inspection reports prior to purchase [8]