The unlimited business opportunities in China's used car market

In the 1980s, China's second-hand car market began to develop. In recent years, China's second-hand car market has developed rapidly and second-hand car transactions have shown rapid growth. In particular, there has even been a “blowout” trend in second-hand car transactions in the local market. For example, the growth in the volume of second-hand automobiles in Beijing, Guangdong, Shanghai, Zhejiang, and other regions has even exceeded that of new cars. Moreover, the brand's used car business has made important progress, and major domestic automobile manufacturers have successively entered the field of second-hand automobiles and have begun to carry out business in succession.

The 2013-2017 Market Depth Survey and Investment Strategic Planning Analysis Report of China's Used Auto Industry shows that in 2012, the country used 479.14 million second-hand car transactions, an increase of 10.6% year-on-year. The transaction amount was 263.626 billion yuan, up by 25.01% over the same period of last year. Including: 2,713,700 used cars, an increase of 15.24% year-on-year; 784,400 passenger cars, a year-on-year increase of 11.44%; 65,48,800 trucks, an increase of 2.20%; 125,000 off-road vehicles, 18,900 MPVs; 13.93 million vehicles. According to the analysis of data compiled by Xiao Bian, the volume of second-hand automobiles in China soared from 252,000 units in 2000 to 4.8971 million units in 2012. The volume of transactions increased rapidly. Judging from the data of developed countries’ auto market, the transaction volume of used cars in developed countries is 1.5 to 3 times that of new cars. The volume of used car market in developed countries is large, and a scale effect has been formed. The volume of second-hand automobiles traded in Germany, Japan, and the United States is equal. Far more than the trading volume of new cars, generally more than 1 times higher than the new car. With the continuous growth of new car sales and retention in China's auto market, the used car market will show a rapid growth trend. It is expected that by the end of the “Twelfth Five-Year Plan”, China will become the world’s second-largest used car market, second only to the United States.