Used Car E-Commerce Industry Overview in China, 2011-2020
China used car market has a history of over 30 years from 1980s. It developed rapidly from 1999 with an annual trade volume increasing from 180 thousand in 1999 to over 9 million in 2015. According to CRI, the average unit price of used cars increased from CNY 30 thousand in 2005 to CNY 60 thousand in 2015 with the growth of economy and car class in China. From 2009, the sales volume of new cars remained the first in the globe and reached about 24.6 million in 2015. By the end of 2015, the vehicle reserve exceeded 170 million in China. The profit of new cars declines severely with the slump growth rate of sales volume. Facing the huge car stock market, the government and practitioners actively seek to develop used car trades.
The trade volume of used cars increases with a rapid growth of car reserve in China while consumers are getting used to buying used cars. With the development of Internet and mobile Internet technology, various e-commerce modes emerged in the used car market in recent years. The used car e-commerce industry has been experiencing an explosive growth since 2014, which attracted many entrepreneurs and investors to enter this promising market.
Generally, the used car e-commerce industry is at an initial stage transiting to a fast development period. Major characteristics of the industry are as follows:the penetration rate is low but the release volume, trading volume and rate are high; the buyer's market is still at the initial stage of growing user bases, where the industry chain is not entirely mature and various parties are competing for car sources. Some e-commerce platforms are developing new commercial modes and creating their own industry ecosphere of used cars to release financial businesses and products for profit.
In China, approximately 70% of the profit in the car industry derives from circulation and after-sales services. Used cars are one of the most important sections in the value chain of car circulation and after-sales service with huge development potential. Therefore, the whole industry chain of used cars has plenty of participators for a long time. The emergence of e-commerce combined with traditional chains provides efficient, transparent and convenient channels and various modes for the trade of used car industry. According to CRI, the trade volume of used cars on e-commerce platforms was about 1 million, accounting for only about 11% of the total (9-9.5 million) in China in 2015, which shows the huge market potential.
Through this report, the readers can acquire the following information:
Definition and Classification of Used Car E-Commerce Platforms
Research Methods of the Report
Development Environment of Used Car E-Commerce in China
Competition in Used Car E-Commerce Market in China
Top 5 Used Car E-Commerce Enterprises in China
Major Development Opportunities and Driving Forces Faced by Used Car E-Commerce Industry in China
Risks and Challenges in Development of Used Car E-Commerce Industry in China
Analysis on Costs of Used Car E-Commerce Industry in China
Development Trend of Used Car E-Commerce Industry in China
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