How is Used Vehicle Market Performing in China?
China used vehicle market is in its early stage of growth. Presently, the ratio of used vehicles sales to new vehicles in China is ~. Globally, China is the largest market for new vehicles. This combined with falling average age of used vehicles shows ample scope for growth in the coming years. A gradual shift has been observed, an increasing number of people are now opting for vehicles under the age of 3 years. The share of cars (in total sales volume) within this category has inclined from ~% in 2015 to ~% in 2017. On the overall level, China’s used vehicle market size has increased from ~ million units of in 2012 to 12.2 million units in 2017, posting a CAGR of ~% during the period. Transaction value from sales reached CNY ~ billion in 2017.
In China, average replacement age of vehicle was ~years till the year 2011. Vehicle replacement age has been gradually declining. Share (in total used vehicle sales) of used vehicle having age less than three years has gradually increased from ~% in 2015 to ~% in 2017.
Introduction of major online companies such as Guazi, Uxin Group, and Renrenche has increased the penetration rate of online companies in China. Online penetration rate has increased from ~% in 2012 to ~% in 2017.
Which Type of Vehicle is most preferred?
China used vehicle market comprises of number of vehicle types. However, inclination towards some types has been observed. In this segment, sedans remain the most used vehicle to be sold in China. Sale of Sedans has increased from ~ million units in 2015 to ~ million units in 2017.
SUVs are the second most preferable and sold used vehicle in China as their rate of sale is increasing at significant pace over the years from ~ million units in 2015 to ~ million units in 2017.
Sale of used MPV’s has increased from ~ million units in 2015 to ~ million units in 2017 as they are mostly opted for commercial purpose.
What are the Major distribution Channels for Used Vehicle Market in China?
In China, used vehicles are largely sold by organized dealer/large Vehicle markets. Sales volume for dealers/car markets has inclined from ~ million units in 2012 to ~ million units in 2017.
People in China still have trust issues on purchasing a vehicle from online medium. Dealers provide easy and accessible after sale service.
However a shift in distribution channel has been observed as percentage of used vehicle sold by dealers has been declining at an increasing pace from ~% in 2012 to ~% in 2017, mainly due to introduction of online companies.
Online used vehicle market percentage share in the overall sales volume has enhanced from ~% in 2012 to ~% in 2017. The share is expected to increase in future as well. Online used vehicle market has achieved high growth rate of ~% during the period 2012-2017.
Which Region is dominating the Sales?
East China has accounted for majority of sales of used vehicles during the year 2017. The region covers provinces such as Shanghai, Jiangsu, Zhejiang, Anhui, Fujian, Jiangxi and Shandong. The region has contributed ~% in sale of used vehicles during 2017. South Central China has accounted for second largest share of ~% during the year 2017. Northern District in China has comprised of ~% share in used vehicles sales during 2017. South West, North East and North West districts accounted for a combined share of ~% in the total sales volume during 2017.
How much are the Customers Willing to Spend?
Vehicles priced at less than CNY 30,000, registered sales of ~ million units in 2017. Cars priced between CNY 30,000-50,000 accounted for the second highest share of ~% during 2017. While cars valued between CNY 50,000-80,000 comprised of ~% of the total sales during 2017. Finally, vehicles priced more than CNY 80,000, made up the rest of the sales.
What is the Preferred Age of Used Vehicles in China?
~ million Units of vehicles within the age bracket of 3-6 years were sold in 2017. Sale of vehicles below 3 years of age has increased to ~ million units in 2017 from ~ million units in 2015. On the other hand, percentage share of used vehicles sold in the bracket of 10+years reached to ~% during the year 2017.
Snapshot on China Online Used Vehicle Market
China’s online used Vehicle market size, in terms of sales volume, increased from ~ million in 2012 to ~ million in 2017. Dealers in the market are charging higher margin of ~% which leads to increased final price of the vehicle. Online websites are just charging a commission of ~% on the transaction value. Moreover, online sellers of used vehicle claim to perform ~ quality checks and fitness test. Online companies list vehicles only after performing rigorous vehicle inspection. This has enhanced level of trust of customers over online used vehicle companies leading to a shift in buyer’s preference.
Snapshot on China Used Vehicle Finance Market
As of 2017, average down payment charged by used vehicle finance providers in China is approximately ~%, while the average rate of interest charged is around ~%. Loan on zero percent down payments is also provided, however in such cases, rate of interest charged increases to approximately ~%. Used vehicle finance penetration in China has increased from ~% in 2016 to ~% in 2017. In 2016, total amount of loan disbursed for used vehicle was in the range of USD ~ billion. The total disbursed increased to USD ~ billion in 2017.
How Competition Scenario Works In China Online Used Vehicle Market?
Major companies in used vehicle market in China are Guazi, Uxin Group, and Renrenche. Guazi has comprised of the maximum share of ~% in the sale of used vehicle in China from online channels during 2017. On the other hand, Uxin Group has comprised of the second highest market share in sale of used vehicle with ~% share during the same year. Renrenche has been accounted for the third highest market share of ~% in the sale of used vehicles during 2017. These three companies cover ~% of the total sales of used cars from online channels during 2017. Online used vehicle companies compete on various parameters such as the number of cities covered, providing value-added services, performing number of quality checks before listing vehicles and portfolio of Vehicles.
How will the Market perform in the Future?
China’s used vehicle market size is expected to increase from ~ million units in 2018 to ~ million units in 2022. It has been expected that there will be a reduction in average replacement age of vehicles in China. This will lead to increase in average ticket size of vehicles. Moreover, online penetration in the used vehicle market is expected to reach up to ~% in 2022 showcasing maximum potential to grow. Online companies such as Guazi are focusing to expand its portfolio of services by expanding into used vehicle finance. Renrenche has planned to open ~ offline stores and is targeting monthly transactions of ~ units by 2018. In China Sale of used vehicles through financing is expected to reach up to ~ million units in 2022, registering a CAGR of ~% during the period 2017-2022. Shift in choice has been observed among people in China. More number of people is opting for SUVs compared to 5 years ago when sedan class was the most popular. As of now, sedan class still dominates the scenario; however, preference of customers is changing gradually. Sale of used vehicle through online platform is expected to increase in future at a CAGR of ~% during the period 2017-2022. Sale of used vehicles through online distribution channel is expected to reach up to ~million units in 2022 from ~million units in 2017.
Companies Cited in the Report
List of Companies Companies Covered in the Report
Che168.com Major Organized Dealers in China Used Vehicle Market
China Grand Automotive Series Co. Ltd
China Yongda Automobiles Services Holding Ltd.
Beijing Old Car Market
Da Shi Xing Automobile
Key Factors Considered in the Report:
Buying Used Car China
China Used Car Market
Used Vehicle Sales China
Used Car Market China
China Used Vehicle Market
Second Hand Car Sales China
Used Car Transactions China
Auto finance Penetration China
Used Car Sales Volume China
Market Used Vehicle China
Used Vehicle Finance China
Online Used Vehicle Market
Sales Volume Second Hand Vehicles China
China Second Hand Car Sales
Used Car Sales China
Chinese Car Dealership
Cheap Cars for Sale China
China Automotive Finance Industry
Chinese Car Dealership
Cheap Cars for Sale China
China Used Car Market Trends
China Second Hand Car Market
Potential China Used Car Market
Second Hand Vehicle Sales China
Used Vehicle Sales Volume China
Online Marketplace Used Cars China
Second Hand Car Sales Volume China
For more information about the report, refer to below link:
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