China Used Car Market is Experiencing an Upsurge in Demand as Contrary to Slump in New Vehicle Sales

China is one of the largest auto marketplaces, producing more than half of all automobiles worldwide. China is both the world's largest used car market and the world's largest automobile produce. The China Used Car market was valued at approximately Yuan ~ trillion in 2021, and it is expected to witness a revenue of Yuan ~ trillion in 2027, with a double-digit CAGR.

The used car market in China has grown significantly in recent years. owing to the industry's rapid rise of online channels as companies seek to enhance customer experience and brand awareness, Chinese online used-car trading platforms are investing heavily in actual retail stores.
Second Hand SUV Cars Gaining Acceptance

In China, most of the owners and intenders prefer mid-variant models over top variants, SUVs account for the largest share of the market, followed by sedans and multipurpose vehicles. The desire to upgrade is strong, and SUVs are the preferred car. Consumers continue to be eager to upgrade their vehicles in the face of continually rising disposable income.

Owing to the rapid expansion and acceptance of online automobile sale, China used car market has benefitted even during the virus spread across the nation. As companies attempt to improve customer experience and brand recognition, Chinese online used-car trading platforms are increasingly investing in brick and mortar retail stores.

The Organized Players have a Dominance in the China Used Car Market
The used car market in China is divided into two segments: organized, and unorganized of which the organized segment holds the majority of the share and with the entry of more players, the organized segment is expected to continue to hold its position. Over the last five years, the number of Organized players entering this arena has increased dramatically. In addition, start-ups typically have a lot of cash to burn, which leads to a wider market reach and faster turnaround times according to reports.

Please refer to the link for a detailed report:
https://www.makreo.com/report/china-used-car-market-performance-and-outlook-to-2027-covid-19-impact-assessment


Further Key Findings
a) Impact of Covid-19: The global demand and supply were both affected by the COVID-19 pandemic. During
the epidemic, China was compelled to temporarily reduce demand for both old and new automobiles.
Furthermore, the global economic slowdown has had an impact on consumer spending in all nations,
including China. Semiconductor chip shortage also led to fall in new vehicle production and has given
further space to used cars market to expand.

b) Gauging Demand Dynamics of China Used Car Market: People are avoiding public transportation and are
more sensitive to the rising cost of new vehicles in the recession, which has resulted in an increase in
used car sales. Stocks of online vehicle sales competition Shift Technologies, as well as Autonation and
CarMax, as well as recent IPO Carvana, have rebounded sharply since the March trough.

c) Urbanization: The government of China has bolstered urbanization as an engine of economic development
in the country. Over the past four decades, China has been experiencing a significant pace and trend
toward urbanization. The rise in urbanization in the country is expected to be a major driver of growth of
the China used car market. With more people migrating to urban centres and cities, the income levels and
living standards of these people will improve, leading to higher demand for second-hand cars in these
areas.

d) Increase of Car Ownership: In China, East China is the fastest-growing regional market, owing to rising
demand for affordable used cars due to their low price and good condition, increasing penetration of
digital advertising, increasing proliferation of the internet empowering the accessibility of used car
information, and increasing customer inclination towards used cars.

e) Increasing Disposable Income: Due to expanding population abilities and employment in service-based
industries, China's disposable income levels are rising. As a result, the number of people owning passenger
cars is rising.

The report titled “China Used Car Market Performance and Outlook to 2027–COVID-19 Impact Assessment” gives a detailed analysis of the industry performance considering the past, present and future trends with a detailed discussion of the macro and microeconomic factors to study the impact of external variables over the industry performance. Competitive assessment help to gain insights on key players positioning in the China used car market. The report also discussed the demand for new vehicles in the country and a comparative study of a new vehicle vs used vehicle demand.

Key Areas Discussed in the Report:
1. COVID-19 Impact Assessment: COVID-19 has proven to be a turning point for the Used Car market, but
there are challenges that are affecting industry performance in China. The second-hand car trading
companies in the country have recently tried to boost their sales through means such as the Internet.

2. Market Assessment: The report examines the China Used Car Market in terms of various parameters such as
the surging internet penetration, increasing number of organized players and increasing urbanization
across the nation has increased demand for Used Car Market. We have covered market revenue and
forecast with detailed assessments of market segments such as market by type (Organized and
Unorganized players), market by Vehicle type (SUV, Sedan and Multipurpose Vehicle).

3. Market Drivers and Industry Dynamics: This section discusses key driving factors supporting China used
car industry growth. Also, the report gives an overview of the ongoing trends in the market and key
challenges present.

4. Macro Factors: Macroeconomic factors plays a major role in industry performance therefore this section talk
about key macroeconomic variable, those have a strong influence over the China used car market and are
highly correlated.

5. Company Analysed: China Grand Automotive Services Group Co., Ltd., China Yongda Automobiles Services
Holdings Ltd., Autohome, Inc., CAR Inc., Renren Inc. and Uxin Limited.

Key Questions Answered
1. How China used car market has fared in the past and what is the present scenario?
2. What are the key variables impacting the China Used car industry growth covering both micro level and
macro-level assessment?
3. How is China economy performing after the virus outburst?
4. Where is China placed in global trade and discuss the present state of the used car trade market?
5. How is China automobile industry performing despite the global economic slump?
6. Was COVID-19 an opportunity for the China used car market or a threat?
7. How China used car industry is segmented and what segments play a dominant role?
8. Which Vehicle type is gaining demand in China used car market?
9. Who are the leading players in the China used car market and what is the investment scenario?

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