Used car market in China – additional information
There had been remarkable growth in the demand for used car in China. The number of sold used cars had amounted to 6.05 million units in 2014, generating an overall used car sales revenue of approximately 368 billion yuan. This four-fold increase in used car sales over a decade, displays the remarkable growth in demand for used vehicles in China. During 2014, the trade volume of used cars in China had increased by 18.5 percent compared to the previous year. Nearly 60 percent of used vehicles traded in 2014 had been passenger cars.
Despite its steady growth, the second-hand car market in China accounts for only a small share of the whole vehicle market. In 2013, 5.2 million sold used cars stood against 17.5 million registered new cars in China. Due to a premature market structure, buying a second-hand car in China seems to be still less appreciated than buying a new car. Over 70 percent of used cars had been traded without an intermediary in 2013. One of the largest issues at hand may be seen in the lack of trust between sellers and buyers, hindering a further development of the used car market in China.
Nonetheless, the second-hand vehicle market in China has vast potential. China has been the world’s largest market for passenger cars since 2008, reaching a sales volume of approximately 20 million units in 2014. A modern, structured market for used vehicles in China is expected to emerge soon due to the high demand. Still, new car production in China does not seem to suffer from the impact of the used car market, with production volumes reaching 24.5 million cars in 2015.