Core Viewpoint - The used car market in China shows a steady growth trend in September 2025, with significant increases in transaction volume and value compared to previous months and the same period last year [3][25]. Market Overview - In September 2025, the national used car market recorded a transaction volume of 1.7944 million units, a month-on-month increase of 5.10% and a year-on-year increase of 8.20%, with a transaction value of 110.466 billion yuan [3]. - From January to September 2025, the cumulative transaction volume reached 14.7328 million units, a year-on-year growth of 3.63%, with a total transaction value of 946.227 billion yuan [3]. Weekly Analysis - From October 20 to 26, 2025, the average daily transaction volume in the domestic used car market fell to 65,900 units, a week-on-week decrease of 4.3% [6]. Segment Market Changes - In September 2025, the transaction volume for basic passenger cars was 986,800 units, with a month-on-month increase of 3.55% and a year-on-year increase of 4.17% [8]. - The transaction volume for SUVs was 232,600 units, with a month-on-month increase of 3.38% and a year-on-year increase of 2.99% [8]. - Commercial vehicles also saw growth, with passenger cars at 104,700 units (10.05% increase) and cargo vehicles at 157,500 units (5.12% increase) [8][11]. Vehicle Age Analysis - In September 2025, vehicles aged 3-6 years accounted for the largest share of transactions at 41.12%, a decrease of 1.24% from the previous month [17]. - Vehicles under 3 years old made up 25.10% of transactions, while those over 10 years old accounted for 12.55% [17]. Price Range Analysis - In September 2025, vehicles priced below 30,000 yuan represented the largest market share at 31.3%, with a month-on-month increase of 1.6 percentage points [24]. - The average transaction price for used cars was 61,600 yuan, a decrease of 800 yuan from August and a decrease of 2,600 yuan from the same period last year [27]. Regional Performance - The East China region led in transaction volume with 506,900 units, a month-on-month increase of 6.21% [25]. - The North China region also showed strong performance with a transaction volume of 276,800 units, increasing by 6.74% [25]. New Energy Vehicle Market Overview - In September 2025, the national transaction volume for used new energy vehicles reached 159,100 units, a month-on-month increase of 7.2% and a year-on-year increase of 58.3% [30]. - From January to September 2025, the cumulative transaction volume for used new energy vehicles was 1.1367 million units, a year-on-year growth of 43.9% [30]. Used Car Circulation Analysis - The transfer rate of used cars in September 2025 was 32.12%, an increase of 1.3 percentage points from the previous month [43]. - The total transfer volume was 576,300 units, reflecting a month-on-month increase of 9.41% [43]. Dealer Survey Insights - In September 2025, the top five provinces for transfer rates were Beijing, Jiangsu, Tianjin, Guangdong, and Zhejiang, with Beijing having a transfer rate of 36.09% [50].

Core Viewpoint - The second-hand car market in China is experiencing significant growth, with a projected transaction volume of 1.79 million units in September 2025, reflecting a month-on-month increase of 5.1% and a year-on-year increase of 8% [1][5]. Market Overview - The total transaction volume for second-hand cars from January to September 2025 reached 14.73 million units, a year-on-year increase of 3.6%, with a total transaction value of 946.2 billion yuan, up 0.7% year-on-year [1][5]. - The second-hand car market is still in a rapid growth phase compared to more mature markets in developed countries, indicating substantial future potential [1][5]. Industry Dynamics - The second-hand car market is benefiting from improved circulation and facilitation measures from local traffic management departments, which are enhancing the ease of transactions for consumers and businesses [1]. - The market is seeing a diversification in the types of vehicles traded, contributing to stable transaction prices [5]. Transaction Structure - In September 2025, the structure of second-hand car transactions shows that basic passenger cars accounted for 59.8%, SUVs for 14.1%, and MPVs for 7.5% [6]. - The market is shifting towards higher-end consumption, with a notable increase in the share of SUVs and MPVs [6]. Age Distribution of Vehicles - The proportion of second-hand cars aged 3 years or less reached 25.1% in September 2025, while those aged 3-6 years accounted for 41.1% [7]. - The trend indicates a growing presence of older vehicles in the market, with significant potential for future scrappage and renewal [8]. Price Trends - The average transaction price of second-hand cars is becoming more pragmatic, with an increasing share of vehicles priced between 30,000 to 50,000 yuan, while the share of vehicles priced below 30,000 yuan is declining [13]. - The transaction price structure for new energy second-hand cars is also evolving, with a notable increase in the share of vehicles priced between 50,000 to 80,000 yuan [18]. New Energy Vehicle Market - The transaction volume of second-hand new energy vehicles reached 15.91 million units in September 2025, marking a year-on-year increase of 58.3% [14]. - The penetration rate of second-hand new energy vehicles has risen from 3.6% at the end of 2022 to 11.8% by September 2025, indicating strong growth potential [14]. Vehicle Transfer and Inventory - The transfer rate of second-hand vehicles has increased, reaching 30.4% in the third quarter of 2025, reflecting improved convenience in vehicle transfers [20]. - The inventory pressure for second-hand cars is gradually improving, with a notable decrease in the proportion of vehicles held for over 30 days [23]. Resale Value - The three-year resale value for new energy vehicles is currently low but is expected to stabilize as the market matures [24][25]. - The depreciation of older new energy vehicles is being mitigated by the increasing value of battery components, suggesting a potential for better resale values in the future [25].

Market Overview - In August 2025, the national used car market saw a transaction volume of 1.7074 million units, with a month-on-month increase of 2.80% and a year-on-year increase of 9.02%, totaling a transaction value of 106.517 billion yuan [3] - From January to August 2025, the cumulative transaction volume reached 12.9384 million units, a year-on-year growth of 3.03%, with a total transaction value of 835.761 billion yuan [3] Weekly Analysis - From September 15 to 21, 2025, the average daily transaction volume in the used car market was 68,100 units, reflecting a week-on-week increase of 0.3% and a year-on-year increase of 5.6% compared to August [6] Segment Market Changes - In August 2025, the transaction volume for basic passenger cars was 953,000 units, with a month-on-month increase of 3.13% and a year-on-year increase of 6.88% [8] - The SUV segment saw 225,000 units sold, with a month-on-month increase of 3.49% and a year-on-year increase of 6.37% [8] - Commercial vehicles showed mixed results, with passenger cars down 0.86% month-on-month but up 11.84% year-on-year, while cargo vehicles increased by 1.88% month-on-month and 15.91% year-on-year [8] Price Analysis - In August 2025, the average transaction price of used cars was 62,400 yuan, down 1400 yuan from July and down 3200 yuan year-on-year [28] - The largest market share was for vehicles priced below 30,000 yuan, accounting for 29.7%, although this segment saw a month-on-month decline of 0.7 percentage points [25] Regional Performance - The used car market showed varied performance across six major regions, with only the North China region experiencing a slight decline, while the other regions saw growth, particularly in Central South and Southwest regions [26] - The East China region recorded a transaction volume of 477,300 units, up 2.79% month-on-month [26] New Energy Vehicle Market - In August 2025, the transaction volume for used new energy vehicles reached 148,400 units, reflecting a month-on-month increase of 3.9% and a year-on-year increase of 59.6% [32] - From January to August 2025, the cumulative transaction volume for new energy vehicles was 978,000 units, a year-on-year increase of 41.8% [32] Vehicle Age Analysis - In August 2025, vehicles aged 3-6 years accounted for the largest share of transactions at 42.36%, although this was a decrease of 1.33 percentage points from the previous month [19] - Vehicles aged over 10 years saw an increase in market share to 13.13%, up 0.64 percentage points month-on-month [19] Transfer Rate and Dealer Insights - The transfer rate for used cars in August was 30.85%, an increase of 0.4 percentage points from the previous month and 1.8 percentage points year-on-year [47] - The top five provinces for transfer rates were Beijing, Zhejiang, Tianjin, Guangdong, and Jiangsu, with Beijing leading at 36.55% [51]

Core Insights - The used car market in China is facing significant operational pressures, with the loss ratio for used car dealers rising to 73.6% in the first half of 2025 [1] - Although the transaction volume of used cars has increased, the average transaction price has decreased by 12.3%, from 61,180 yuan in 2024 to 53,673 yuan in 2025 [1] - New energy vehicles (NEVs) accounted for 36.7% of total vehicle sales in China, but only 5.3% of used car transactions, indicating a disparity in market penetration [1] Summary by Sections Used Car Market Performance - The used car transaction volume has shown growth, but the average price has declined significantly, indicating a "volume up, price down" trend [1] - The average resale value of NEVs is lower than that of traditional fuel vehicles, with a three-year depreciation rate of 43% for NEVs compared to 62% for fuel vehicles [1] New Energy Vehicle Trends - The transaction volume of used NEVs reached 687,000 units in the first half of 2025, marking a year-on-year growth of 35.5%, which is significantly higher than the overall market growth [2] - There is an increasing customer interest in used NEVs, driven by their price advantages compared to new models [2] Market Challenges - The ongoing "price war" in the new car market has adversely affected used car dealers, leading to decreased retail purchase volumes and lower customer satisfaction [2] - The used car industry is entering a phase of adjustment, facing issues such as inconsistent inspection standards and severe inventory backlog [3] - The market is expected to shift towards a "low margin, high turnover" model starting in 2025, with new profit opportunities arising from financial and insurance services [3] Industry Resilience - Despite high loss ratios and inventory challenges, the industry shows resilience supported by favorable factors such as the "trade-in" policy, which enhances the supply of quality used cars [3] - NEVs are becoming a core growth engine for the industry, benefiting from policy support and evolving consumer demand [3]

Group 1 - The used car market in China saw a transaction volume of 9.57 million units in the first half of the year, representing a year-on-year growth of 1.99%. The total annual transaction volume is expected to reach 20.5 million units, with a projected growth rate of 4%-5% [1] - Despite the increase in transaction volume, the average transaction price for used cars decreased by 12.3% year-on-year, indicating a trend of rising volume but falling prices [1] - The proportion of used car dealers facing losses increased to 73.6% in the first half of the year, highlighting the challenging operating environment for businesses in the sector [1] - The average inventory cycle for used cars extended to 43 days, with 35.6% of companies experiencing inventory cycles exceeding 30 days, indicating growing inventory pressure [1] - The average customer acquisition cost rose to 6,200 yuan, while the average profit per transaction was only 1,500 yuan, reflecting high costs and low margins in the market [1] - Intense competition exists in the market, with major used car platforms having similar business models, leading to price wars as the primary means of competition [1] Group 2 - In the first half of 2025, the proportion of new energy vehicles in the used car transaction market was only 5.3%, significantly lower than that of traditional fuel vehicles [2] - The low market share of new energy vehicles is attributed to their relatively small ownership compared to fuel vehicles and the fact that many are still new cars not yet entering the used market [2] - The average three-year residual value for new energy vehicles is only 43%, compared to 62% for fuel vehicles, indicating lower value retention [2] - Traditional used car platforms are inadequately prepared for the valuation, inspection, and after-sales service of new energy vehicles, contributing to the small market size [2] - Despite the challenges, the transaction volume of new energy used cars is showing a trend of rapid growth [2]

Core Insights - The Chinese used car market is experiencing significant growth, driven by increasing consumer demand and supportive government policies [1][3] Group 1: Market Performance - In August, China's used car transaction volume reached 1.7074 million units, a year-on-year increase of 9.02% [1] - From January to August, the cumulative transaction volume of used cars was 12.9384 million units, an increase of 379,900 units compared to the same period in 2024 [1] - The annual used car transaction volume is expected to exceed 20 million units [1] Group 2: Policy Support - The Chinese government is implementing measures to promote used car transactions, including facilitating online transaction management and supporting third-party information platforms [1] - Specific initiatives include the electronic management of transaction contracts and vehicle records in Beijing, and financial incentives for qualifying used car enterprises in Shanxi [1] Group 3: New Energy Vehicles (NEVs) - The used NEV market is growing rapidly, with 142,800 units traded in July, marking a 59% year-on-year increase [3] - From January to July, 829,000 NEVs were traded, a 39.1% increase compared to the same period in 2024 [3] - NEVs now account for over 20% of transactions on platforms like Guazi [3] Group 4: Industry Challenges and Recommendations - The used NEV sector faces challenges in maintaining healthy and sustainable market growth amid price competition and declining technology costs [4] - Industry leaders emphasize the need for improved standards in inspection and evaluation processes to enhance service quality and support green transformation [3][4]

Core Insights - The second-hand car industry in China is facing significant challenges in the first half of 2025, with a rising loss ratio among dealers reaching 73.6% [3] - The average inventory cycle for second-hand cars has extended to 43 days, indicating increased operational pressure on dealers [3] - The average customer acquisition cost for second-hand car platforms has surged to 6200 yuan, while the average profit per transaction is only around 1500 yuan [3] Industry Overview - The second-hand car market saw a transaction volume of 9.57 million units in the first half of 2025, a year-on-year increase of 1.99%, with a total transaction value of 623.24 billion yuan [4] - The average transaction price for second-hand cars dropped from 61,180 yuan in 2024 to 53,673 yuan, reflecting a decline of 12.3% [4] - The overall transaction volume for second-hand cars in 2025 is projected to reach approximately 20.5 million units, with a year-on-year growth rate expected to be between 4% and 5% [4] Electric Vehicle Segment - In the first half of 2025, electric vehicles accounted for 36.7% of total vehicle sales in China, but only 5.3% of second-hand car transactions, indicating a significant gap compared to new car sales [4] - The low resale value of electric vehicles, with a three-year depreciation rate of only 43% compared to 62% for fuel vehicles, contributes to their underrepresentation in the second-hand market [5] - Despite the challenges, the transaction volume of second-hand electric vehicles grew by 35.5% year-on-year, totaling 687,000 units [5] Dealer Challenges - New car dealers are also experiencing severe losses, with 52.6% reporting operational losses in the first half of 2025, and only 29.9% achieving profitability [5]

Core Insights - The second-hand car market is facing significant challenges, with over 73.6% of dealers reporting losses in the first half of the year [2] - The total transaction volume for second-hand cars reached 9.57 million units, a year-on-year increase of 1.99%, while the cumulative transaction value was 623.24 billion yuan [2] - The average transaction price for second-hand cars decreased by 12.3%, from 61,180 yuan in the same period last year to 53,673 yuan [2] - The price war in the new car market has adversely affected the second-hand car sector, leading to some new cars being priced lower than their second-hand counterparts [2][3] - The average inventory cycle for second-hand cars has extended to 43 days, with 35.6% of dealers experiencing cycles longer than 30 days [3] - The average customer acquisition cost for second-hand car platforms has risen to 6,200 yuan, while the average profit per transaction is only around 1,500 yuan [3] - The market for second-hand electric vehicles (EVs) remains small, with only 5.3% of second-hand transactions involving EVs in the first half of the year [4] - The three-year depreciation rate for electric vehicles is significantly higher than that of fuel vehicles, with an average retention rate of only 43% compared to 62% for fuel vehicles [4] - Despite the challenges, the transaction volume for second-hand electric vehicles grew by 35.5% year-on-year, totaling 687,000 units in the first half of 2025 [4]

Core Viewpoint - The Chinese used car market is poised to leverage its position as the largest new car consumer market to expand into global markets, particularly through long-distance used cars, which are increasingly seen as a viable option for international trade [2][3]. Group 1: Market Potential - In 2024, China's used car export volume has surpassed 400,000 units, covering over 160 countries and regions, indicating a significant opportunity for growth in the global market [2]. - Long-distance used cars are gaining traction due to their price competitiveness and suitability for emerging markets, which prioritize practical and cost-effective vehicles [3]. Group 2: Export Market Dynamics - The primary target markets for China's long-distance used cars are approximately 117 left-hand drive countries, mainly in Southeast Asia, the Middle East, Eastern Europe, Africa, and Latin America, with an annual import growth rate of around 6% from 2021 to 2024 [4]. - In Central Asia and Northern Asia, China's used cars have captured about half of the import market share, with an annual growth rate of 28% [4]. Group 3: Challenges in Exporting - The development of long-distance used cars faces challenges such as fragmented vehicle sources, high certification costs due to non-standard vehicle conditions, and inefficiencies in the distribution process [5][6]. - There is a significant gap in after-sales service for exported used cars, with complaints emerging regarding the lack of support for vehicles sold overseas [7][8]. Group 4: Strategic Initiatives - Companies like SAIC Volkswagen are exploring various models for used car business, including repurchase strategies to stabilize prices and enhance competitiveness in international markets [9]. - The industry anticipates that if domestic dealers and trade enterprises can effectively utilize specialized international trade strategies, the export share of long-distance used cars could rise from under 8% to 50% within the next decade, achieving an annual export target of 5 million units [10].

Core Viewpoint - The second-hand car market in China is experiencing growth, with significant potential for future development, particularly in the context of the rising popularity of electric vehicles [1][5]. Market Overview - In July 2025, the national second-hand car transaction volume reached 1.66 million units, a month-on-month increase of 0.2% and a year-on-year increase of 3% [1][5]. - From January to July 2025, the cumulative transaction volume was 11.23 million units, a year-on-year increase of 2%, while the transaction amount was 729.2 billion yuan, a slight decrease of 0.1% [1][5]. Industry Growth - The second-hand car market is recovering, with various local traffic management departments facilitating transactions and improving circulation [1][2]. - The market is still in a rapid growth phase compared to developed countries, indicating substantial future potential [1][5]. Transaction Structure - The transaction structure shows a growing preference for SUVs and MPVs, while the market for passenger cars is becoming more high-end [6][7]. - In July 2025, the proportion of cars aged 3-6 years accounted for 45% of transactions, indicating a trend towards newer second-hand vehicles [7][8]. Price Trends - The average transaction price of second-hand cars is trending towards mid-to-high-end models, with a notable increase in the proportion of cars priced between 80,000 to 150,000 yuan [13][17]. - The market for second-hand electric vehicles is also growing, with a significant increase in transaction volume and penetration rate [14][15]. Inventory and Turnover - The inventory pressure in the second-hand car market is gradually improving, with a notable decrease in the proportion of cars held for over 30 days [22]. - The turnover rate for second-hand cars has increased, reaching a historical high of 30.4% in Q3 2025 [19][20]. Future Outlook - The potential for growth in the second-hand car market remains strong, particularly with the ongoing development of electric vehicles and favorable government policies [1][18]. - The market is expected to continue evolving, with increasing consumer interest in newer, more efficient vehicles [24].