Along with the increase of car ownership, China’s used car market entered into a period of rapid development. In 2014, the volume and amount of used car trading in China were recorded at 6.05 million vehicles (up 16.3% year on year) and RMB367.6 billion (up 26.1% year on year), respectively. In H1 2015, the market continued to grow, with trading volume and amount rising 15.1% and 8.3%, respectively, on a year-on-year basis. Estimated at an average vehicle replacement cycle of 5-6 years, China’s used car market is expected to usher in accelerated growth in the next few years, with trading volume to exceed 10 million vehicles by 2017.
By segment, China’s used car market characterizes the two below: 1.Sedan becomes the subject of the market. In 2014, the volume of used sedan trading in China was 3.51 million vehicles, accounting for 58% of the total; the amount of used sedan trading came to RMB227.9 billion, representing the largest proportion (62%) of the total.
2.SUV grows at the fastest pace. In 2014, the volume of used SUV trading in China attained 200,000 vehicles, up 25% from a year ago. The growth rate will be around 38% during 2015-2018 to make SUV the fastest-growing used car market segment.
With respect to trading channels, China is intensifying the market layout of used car trading market, used car dealers, used car online trading platform, etc. Among them, used car e-commerce market has grown obviously fast, with trading volume and amount approximating 350,000 vehicles and RMB19.26 billion in 2014, a respective year-on-year surge of 58.4% and 60.3%.
According to website features, Chinese used car e-commerce can be divided into three categories: service information-oriented, represented by www.273.cn and iautos.cn; TOB auction websites e.g. www.cheyipai.com, www.youxinpai.com, www.kx.cn, pahaoche.com, etc.; TOC consignment websites e.g. souche.com www.guazi.com, renrenche.com, etc. In 2014, www.cheyipai.com and www.youxinpai.com with used car trading volume accounting for 71.4% of the entire used car e-commerce market became the largest used car e-commerce platforms in China.
Founded in 2011, www.youxinpai.com is a used car trading services platform that integrates vehicle condition assessment, bid auction, secure payment, formalities agent and logistics & transportation and earns profits from charging detection cost, 1%-3% transaction commission, transfer fee, and logistic fee, belonging to the typical B2B auction used car trading e-commercial company. In the future, www.youxinpai.com will pay attention to regional market development, used car evaluation system construction, business partner expansion as well as construction of used car information transparency.
www.cheyipai.com was founded in 2006 and the online platform was established in 2010, in the possession of four service brands i.e. Cheyipai online trading platform, 268V used car standardized testing technology, Yunyi automakers / dealers used car e-commerce solutions, and 268V Xing certification authorization service, making profits from charging detection cost (charge the seller RMB300 for successful trade), trading commissions (charge the buyer 3% commission), 2B advertising and information service fee, and logistics service fee, providing used car trading with detection, assessment, trading, training, consulting, replacement and other services, belonging to the C/B2B used car trading e-commercial company. With the improvement of Xing certification requirements, www.cheyipai.com will give top priority to raising service standards to improve the quality of used cars, classification standard and precision.
China Used Car Market Report, 2015-2018 mainly covers the followings: Overview of used car industry in China, involving brief introduction, development history, industry policies, etc. Research on overall used car market in China, including used car trading modes and channels, market scale, market structure, market status and trends; Research on used car market segments in China, including trading volume by models and trading scale by regions; Research on used car industry chain in China, involving upstream new car market, downstream dismantling & scrapping market, and used car financial research; Research on used car dealers in China, covering operating conditions, used car business, recent news, etc. Research on used car e-commerce market in China, covering operation mode, market scale, competition pattern, and financing analysis; Research on used car online trading platform, including profile of platforms, business model, operation analysis.