The price war of new cars hurts used cars

Mondo Cars Updated on 2024-02-09

Cars

The development status and trend of the second-hand car market under the new policy.

i.Background.

Driven by the new policy, the domestic second-hand car market has ushered in new opportunities for comprehensive development. In the past year, the full implementation of various policies has made the used car market expected to hit the annual transaction volume target of 20 million units. However, the surprise attack of the new car war has brought challenges to the used car market, and the market is constantly adjusting and adapting in a state of surprise. In this context, we will delve into the performance and changes of the used car market last year, as well as the trends and challenges of future development.

ii.Last year's performance of the used car market.

Last year, the number of used car transactions in the market reached a record high of more than 18 million units, but at the same time, the average transaction price fell, and the profit loss of used car dealers became a major problem in the market. This means that despite the expansion of the market, profits are declining, and used car dealers need to find new growth points. Although the transaction volume reached an all-time high, it was still some way short of the expected 20 million units, reflecting the slower than expected market growth and the impact of the new policy on the market will take longer to be felt.

iii.* The impact of the war on the used car market.

The new car war has had a significant impact on the second-hand car market, especially in the first half of the year, the average transaction of second-hand cars fell by about 2,000 yuan, resulting in second-hand car dealers being more cautious when collecting cars and extending the inventory cycle. This phenomenon has made the second-hand car market fall into a wait-and-see state, and it is more sensitive to fluctuations. The uncertainty of the market increases the risk of trading, and used car dealers need to be more cautious in assessing market trends and adjusting their business strategies.

iv.Changes in the structure of the used car market.

Last year, there were some changes in the structure of the used car market, with the increase in low-priced used cars mainly coming from fourth- and fifth-tier cities, while the demand for luxury used cars increased because of their greater profit margins. At the same time, the price structure of second-hand cars has also changed, and the proportion of models with more than 150,000 yuan has increased year-on-year, showing that consumers' demand for high-end second-hand cars has increased. This shows that consumers' demand for higher-quality, better-equipped second-hand cars is increasing, and the second-hand car market is gradually developing in the direction of high-end.

v.The rise of new energy vehicles.

Although the new car war has brought challenges to the second-hand car market, new energy vehicles have become a new growth point in the second-hand car market. Last year, the national new energy second-hand car trading volume reached 7630,000 units, a year-on-year increase of 42%, and the penetration rate also increased from 3 at the beginning of last year8% to 59%。The value retention rate of new energy vehicles has also continued to improve, and product upgrades and technological breakthroughs have brought better value retention performance. This shows that consumers' awareness of environmental protection and energy conservation has increased, and the acceptance and demand for new energy vehicles have been continuously improved, and the status of new energy vehicles in the second-hand car market has gradually risen.

vi.The transfer rate of used cars has increased.

Last year, the total number of second-hand cars transferred exceeded 5 million, and the transfer rate was 273%, up 2 percent year-on-year2 points. The nationwide lifting of restrictions on the relocation of small non-operating second-hand cars that meet the National V emission standards has broken through the blockages of second-hand car circulation and improved the circulation of second-hand cars. The implementation of this policy has made the used car market more active and the circulation between regions smoother. The increase in the transfer rate of second-hand cars not only drives the growth of the market's trading volume, but also enhances the competitive vitality of the market and promotes the healthy development of the market.

Conclusion. To sum up, last year was a critical year for the development of the domestic second-hand car market, and the promotion of new policies brought about the overall development and challenges of the market. Although the new car war has brought a certain impact to the second-hand car market, the rise of new energy vehicles and the improvement of the second-hand car transfer rate have injected new vitality and opportunities into the market. The used car market will continue to adjust and adapt to the new policies to better meet the needs of consumers and promote the healthy development of the market. In the future, with the in-depth implementation of policies and the intensification of market competition, the second-hand car market will usher in more colorful development prospects and provide consumers with better choices and services.

Related Pages