Development of Used Car Market in China

Abstract

Although still in its early development phase, rapid growth of auto ownership has also injected new vitality for used car market in China. Under the support of series policy, the used car market reveals leaping development character with qualified changes. It is essential to understand the new changes in the used car market. This paper conducted research on the new features of used car market in China to promote its development. Environment analysis showed that used car market will be strongly enhanced by the blooming of auto market, rapid GDP growth and policy support, which experienced steady trade scale increase and structure optimization. The used car trade experienced steady trade scale increase and structure optimization. Along with the purchasing pattern changing, significant expansion of the secondhand car market is imminent, even with hinder issues such as lack of integrity, evaluation criteria and after-service system, and incomplete policy and regulation. Several new features were identified, strong policy support, enlarging market scale and irradiation loop, remarkable concentration increase, increased status of brand used car, and enhanced trading service platform establishment. It is indicated that China’s used car market is making the shift from subordinate position to one of the dominant positions in auto industry, which is expected into a high speed, up-going development passage in the future.