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China Used Car Market Size (2024 - 2029)

The Chinese used car market is poised for significant growth, driven by shifts in consumer behavior and economic factors. The market's expansion is fueled by a growing preference for car ownership over public transportation, a trend accelerated by the COVID-19 pandemic. As economic uncertainties make new cars less accessible for many, used cars present a practical alternative, contributing to the market's resilience and anticipated growth. Additionally, government initiatives to remove barriers to cross-regional used car sales are expected to further enhance market dynamics and consumer accessibility.

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Market Size of China Used Car Industry

China Used Car Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 12.68 %
Market Concentration Medium

Major Players

China Used Car Market Major Players

*Disclaimer: Major Players sorted in no particular order

China Used Car Market Analysis

The Chinese Used Car Market is valued at USD 57.42 billion, and it is expected to reach USD 104.3 billion in the next five years, projecting a CAGR of 12.68% during the forecast period.

Due to the COVID-19 pandemic and subsequent lockdowns, the market experienced a substantial decline. Despite the fact that buyers' reluctance to purchase new vehicles and lower cash reserves prevented them from doing so, the slump was not as significant as that of new car sales. However, the market is anticipated to resume its pace in the coming years as life returns to normal. Because public transportation can be risky, the pandemic made owning a car an unavoidable part of life. Before COVID-19, people who preferred public transportation are now potential buyers in the market for used cars.

There were approximately 17.59 million used cars sold in China in 2021, a 22.7% increase from 2020. This was because a large portion of the population planned to purchase a car after the virus subsided and mobility restrictions had been lifted. Taking into account the affordability factor and interest in SUVs, the Chinese used car market is expected to grow in the near future.

However, given the pandemic's employment uncertainty, pay cuts, and job losses, new cars are becoming increasingly out of reach for middle-class consumers. Used cars offer a viable and balanced alternative.Chinese authorities have instructed local governments to eliminate policies that prevent cross-regional sales of used cars in order to facilitate trade and increase consumption in the country.

China Used Car Industry Segmentation

Any vehicle that has previously been owned and is being resold through private sellers, classified ads, or local dealers without undergoing a significant vehicle inspection by an expert is considered to be a used car.

The Chinese Used Car Market is Segmented by Vehicle Type (Hatchback, Sedan, Sport Utility Vehicle (SUV), and Multi-purpose Vehicle (MPV)), Booking Channel (Online, OEM Certified/Authorized Dealerships, and Multi-Brand Dealerships), and by Transaction Type (Full Payment and Finance). For each segment, the market sizing and forecasts have been provided on the basis of value (in USD million) and volume (in metric tons).

By Vehicle Type
Hatchbacks
Sedan
Sports Utility Vehicle
Multi-purpose Vehicle (MPV)
By Booking Channel
Online
OEM Certified/Authorized Dealerships
Multi-Brand Dealerships
By Transaction Type
Full Payment
Finance
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China Used Car Market Size Summary

The Chinese used car market is experiencing significant growth, driven by a shift in consumer behavior and the expansion of digital platforms. The market, which faced challenges due to the COVID-19 pandemic, is rebounding as more individuals who previously relied on public transportation are now seeking personal vehicles. This shift is partly due to the perceived risks associated with public transport during the pandemic. The affordability of used cars, coupled with a growing interest in SUVs, makes them an attractive option for consumers, especially as new car purchases become less feasible for many middle-class families. The Chinese government's efforts to remove barriers to cross-regional used car sales further support market expansion, facilitating trade and increasing consumption.

The rise of online channels has been a pivotal factor in the market's growth, with platforms investing heavily in both digital and physical retail spaces to enhance customer experience and brand recognition. These online marketplaces have successfully attracted a growing number of buyers by promoting the convenience and transparency of online transactions compared to traditional dealerships. The market is characterized by a diverse range of business models and is supported by a robust auto financing sector, which offers favorable loan terms and conditions. Key players in the market, such as Guazi, Uxin Group, and Renrenche, compete on various fronts, including service offerings and geographic reach, to capture a larger share of the market.

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China Used Car Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Porters Five Force Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Vehicle Type

      1. 2.1.1 Hatchbacks

      2. 2.1.2 Sedan

      3. 2.1.3 Sports Utility Vehicle

      4. 2.1.4 Multi-purpose Vehicle (MPV)

    2. 2.2 By Booking Channel

      1. 2.2.1 Online

      2. 2.2.2 OEM Certified/Authorized Dealerships

      3. 2.2.3 Multi-Brand Dealerships

    3. 2.3 By Transaction Type

      1. 2.3.1 Full Payment

      2. 2.3.2 Finance

China Used Car Market Size FAQs

The China Used Car Market is projected to register a CAGR of 12.68% during the forecast period (2024-2029)

Guazi , Uxin Group, Souche , Renreche and CAR Inc are the major companies operating in the China Used Car Market.

China Used Car Market Report Snapshots

China Used Car Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)