The used car market in China is experiencing a significant shift in 2024, with second-hand new energy vehicles (NEVs) emerging as the fastest-growing segment. According to the China Automobile Dealers Association (CADA), from January to September of this year, a total of 789,800 used NEVs were sold nationwide, marking a 54% year-on-year increase. It is projected that the transaction volume of used NEVs will surpass one million units by the end of 2024.
The recent “2024 Third Quarter Used Car Online Transaction Data Report” by Tiantian Paiche, an online used-car trading platform, revealed that 68.2% of used NEVs on the platform were three years old or younger, with an average transaction age of 3.8 years. The average transaction price for used NEVs stood at 78,200 yuan (10,900 USD), significantly higher than the average transaction prices for used gasoline-powered vehicles and used cars, which were 54,300 yuan (7,600 USD) and 57,100 yuan (8,000 USD) respectively.
In a broader context, the Chinese second-hand car market is aiming to sell 20 million used vehicles this year. From January to September 2024, the cumulative transaction volume of used cars reached 14.2168 million units, a 5.37% increase compared to the same period last year. The cumulative transaction amount amounted to 939.232 billion yuan (130 billion USD). Specifically, the transaction volume of used passenger cars saw a 5.06% year-on-year increase, with SUVs and MPVs experiencing notable growth rates of 10.26% and 9.20% respectively.
Looking at the breakdown of transactions in September, used cars with a use age of three to six years accounted for the largest proportion at 48.64%. Models with a use age of less than three years, seven to 10 years, and more than 10 years followed with 24.99%, 17.42%, and 8.95% respectively.
In terms of regional exports, Zhejiang Province led the way from January to June 2024, exporting 38,286 used cars with an export value of 753.375 million USD, marking a significant increase of 161.5% and 155.7% respectively.
Overall, the dynamics of the Chinese used car market are evolving rapidly, with a notable surge in the demand for second-hand new energy vehicles. This trend is expected to continue shaping the landscape of the industry in the coming years.
Source: CADA, GADA, CE
