Market Research Reports - Ken Research Buying Used Car China, China Used Car Market | Page 2

Market Size:
China used vehicle market is in its early stage of growth. Globally, China is the largest market
for new vehicles. This combined with falling average age of used vehicles shows ample scope
for growth in the coming years. A gradual shift has been observed, an increasing number of
people are now opting for vehicles under the age of 3 years.
On the overall level, China’s used vehicle market size has increased three fold in last 5 years
from 2012 to 2017. Introduction of major online companies such as Guazi, Uxin Group, and
Renrenche has increased the penetration rate of online companies in China. Online penetration
rate has increased in last 5 years as well.
Market segmentation:
By Type: Sedans (basic passenger cars) has remained the most used type of vehicle in China.
SUVs are the second most preferable type and their sale has amplified from 2015-2017. On the
other hand, used Micro Van sales have augmented from 2015 to 2017. These types of vehicles
are mostly preferred by large families and for commercial purposes. Other types of vehicles
such as Trailer, motorcycles and low speed trucks have registered the remaining proportionate
share in 2017.
By Vehicle Age: Major trade of used vehicle has taken place within the age bracket of three to
ten years. Sale of cars under 3 years of age is increasing significantly due to growing
penetration of online channels and variety of finance schemes available to the public.
By Region: East China has accounted for majority of sales of used vehicles during the year 2017.
The region covers provinces such as Shanghai, Jiangsu, Zhejiang, Anhui, Fujian, Jiangxi and
Shandong. As of 25th April 2018, Shanghai has purchasing power parity (PPP) which is second
highest in China. East China accounts for the highest population compared to all other regions.
South Central China has accounted for second largest share in the year 2017. Major provinces
covered in south central China are Henna, Hubei, Hunan, Guangdong, Guangxi, Hainan, Hong
Kong and Macau.
Northern district encompasses Beijing, which is the capital city and commercial heart of the
country with highest PPP. South West, North East and North West districts accounted for a
combined share of around 27% in the total sales volume during 2017.
By Price: People in China generally prefer to purchase used vehicles in price range less than CNY
30,000. Cars priced between CNY 30,000-50,000 accounted for the second highest share.