“The growth rate of the new car market is gradually slowing down, and used cars are starting to accelerate, and will become the new engine for the development of the industry in the future.” Said Shen Rong, Deputy Secretary-General of the China Automobile Dealers Association.
According to the latest automobile dealership data released by the China Automobile Dealers Association, from January to October in 2014, the volume of used-car sales was 4,911,900, an increase of 16.78% over the same period of last year. The turnover was 294.478 billion yuan, up by 27.08% from the same period of last year. .
The use of second-hand automobiles to replace the new car market and become the main body of the auto consumption market is an inevitable trend in the development of the auto industry. U.S. used cars are 3.3 times the volume of new cars, and Germany is 2.3 times. Even in Japan where the volume of second-hand cars is declining, used cars are 1.5 times the volume of new cars. Compared with developed countries, the ratio of second-hand automobiles to new-vehicle transactions in China is still relatively low, which is less than one-tenth that of the United States and one-eighth that of Germany; it is one-sixth that of Japan and South Korea. Therefore, it is conservatively predicted that even if the transaction volume of used cars and new cars in China reaches a level of 1:1, the market size will be more than tens of millions.
At present, China’s first “car family” has entered the stage of purchasing a second car or replacing a new one. With the transformation of the automotive market from the incremental market to the stock market, the role of used car circulation in expanding the cycle of automobile consumption has become increasingly prominent. As of the end of 2013, the number of vehicles in China has exceeded 140 million, and the scale of new cars has grown by more than 10 million vehicles each year. Such a large amount of ownership and demand means that the automobile market will gradually enter the peak period of replacement and retirement. Recycling and dismantling will become even more important in the automotive industry and in the development of recycling economy.
In addition, as the official car system of the Chinese government, state-owned enterprises and public institutions reforms and the frequency of replacement of personal vehicles accelerates, more second-hand cars will enter the market.
As an important part of the automotive aftermarket, the development of the used car market will also fully drive the development of various areas of the market, such as vehicle maintenance, testing, modification, beauty, quality, supplies, finance, and insurance. First of all, the used car must be repaired, refurbished, etc. before the transaction, and it is also necessary to provide a test report. In the process of trading, it also needs auto financing, insurance and other services. After the transaction, the owner still needs further maintenance. The entire process of second-hand car transactions will involve all areas of the automotive aftermarket.
At the same time, the policy environment of China's used car market is also facing changes, such as: three limit policies to stimulate change; environmental protection concepts and regulatory policies to strengthen the change; "second-hand car evaluation and evaluation of technical specifications," the national standard implementation of changes in vehicle condition information asymmetry; The Three Guarantees Policy changes the concept of second-hand car business services and the acceleration of the trend of financial capital to enter second-hand cars.
Shen Rong also told reporters, “The poor circulation of second-hand cars caused by the restricted-movement policy will be transmitted to the new car market. At the same time, the decline in the price of vehicles will cause the value of assets to shrink. Take Beijing as an example. The price loss caused by the decline in the turnover price of vehicles has been Ten billion yuan.” In response, the Ministry of Commerce conducted investigations on issues such as restrictions on relocation, and the China Automobile Dealers Association had submitted a report to the Ministry of Environmental Protection on the proposal to uniformly move in the same emission standards as local vehicles in use.