Second-hand car market will usher in five years of golden year trading volume

Just six months ago, most auto manufacturers were still worried about the sales target for this year, but the auto market has finally found a new growth point as the replacement of used cars continues to heat up. With the introduction of the policy of restricting purchases in first-tier cities, new car transactions have fallen into a sluggish state. Dealers have sensitively captured any clues to sales, and official data seem to confirm that the growth of second-hand car sales exceeds the growth of new car sales. Within five years, China's auto sales model will move closer to developed countries such as Europe and the United States.

Pre-July Used Car Deal Increases 143.9%

Mr. Guo has just successfully replaced a Guangzhou Automobile Honda Accord. He never expected that he would sell his old vehicle for nearly 4,000 yuan in just two hours. Speaking of his own replacement experience, Mr. Guo felt deeply: “Just the old car needs to be dealt with. The replacement business saves me a lot of time and energy.” Mr. Guo believes that through the replacement and auction of his used car The final transaction price is much higher than its own psychological price. After filling in the remaining new car models, it successfully mentioned that the new car has completed the replacement, and the transfer formalities of the used car are all handled by the 4S shop.

There are not a few customers in the near future who have replaced new cars with used cars like Mr. Guo. In a number of 4S stores in the capital, the reporter saw that, thanks to the continuous increase in the proportion of used car replacement, the recent new car transactions in all 4S stores have generally increased.

According to the statistics of Beijing Yayuncun Automobile Trading Market (hereinafter referred to as “Asia City”), the cumulative transaction volume of used vehicles in Beijing from January to July was 379,600, a cumulative increase of 143.9% year-on-year, accumulatively exceeding the sales of new vehicles by 15.1%. Especially in July, the number of used-car sales was 60,600, an increase of 83.6% year-on-year, an increase of 8.2%, and the ratio of old and new cars was 1:1.2. The turnover of used cars exceeded the sales of new cars by 24.9%.

According to Luo Lei, deputy secretary-general of the China Automobile Dealers Association, the nation’s second-hand car trade reached 2,312.9 thousand vehicles in the first half of this year, a year-on-year increase of 18.48%. The Automobile Industry Association announced that the sales of new domestic cars increased by only 2.93% over the same period. The data reflects that the growth rate of second-hand vehicle trading volume greatly exceeds the sales volume of new vehicles, indicating that the demand for replacement has begun to exert force, and replacement of used vehicles will gradually become the main driving force for driving the auto market in China.

Nielsen and the China Association of Automobile Manufacturers recently released the "White Paper" study also found that in Beijing as the representative of the first-tier cities, to upgrade the purchase and repeated purchase for the purpose of the car owners have reached 58% of the proportion of new car buyers, which increased Buyers accounted for 35%, and swap owners accounted for 23%.

Crops, vice president of Nielsen China, said that this year's car sales fell, the auto market is facing the winter. However, with the passage of time, sales have steadily improved, among which the used car replacement business has become the main driver of new car sales.

The reporter learned that the current penetration of new car sales for many brands of 4S stores in the Beijing market has reached 30% to 40%, and even more so in July, the figure is as high as 50%. This figure was reached two years ago. 8% of the 4S stores are regarded as outstanding. The new car sales that were replaced by old cars accounted for 58% of all new car sales.

This year, the volume of used cars will reach 5 million.

"The volume of second-hand cars has grown rapidly, and replacement demand has also depended on the activity and development of used cars. Although the used car market is greatly affected by the external environment, it will still have a 20% growth rate this year, and the transaction volume will exceed 5 million vehicles. The prediction of Shen Rong, the deputy secretary-general of the China Automobile Dealers Association, has also been confirmed by the Asian city.

In July, the volume of second-hand car ownership in Asia increased by 167.2% year-on-year, a growth of 5.5% from the previous month, while the cumulative number of second-hand car transfers from January to July increased by 169.1% year-on-year. According to Yan Jinghui, deputy general manager of the city of Yacheng, there are many more customers entering the used car market than the new car market. Many customers are trying to sell the old cars for a good price. The sale price is sold.

Although the forecast of used vehicles of 5 million vehicles is only one quarter of the estimated 20 million new vehicle sales, each dealer is reluctant to give up the “gold mine” that can bring about actual sales.

A FAW Toyota dealer admitted frankly that “at present, the new car market has gradually experienced sluggish growth. In the case of first-tier city restrictions, the replacement of used cars has brought about considerable sales, and the special subsidy for the replacement of the manufacturers has also allowed new car sales. The composition of the source of tourists is gradually shifting to replacing customers."

The reporter learned from the market that since last year, various manufacturers have successively introduced subsidies for replacement customers, and cash subsidies ranging from 2,000 yuan to 4 million yuan have directly stimulated consumers' desire for replacement. The Beijing area is to promote the elimination of old motor vehicles. The government has intensified the subsidy for users of “exiting” and phasing out old motor vehicles so that the used-car trade will continue to enter a peak period.

Yan Jinghui told reporters that at present, the average number of years of change in China is 3-5 years, while foreign countries may change a new car in 2-3 years. Therefore, auto companies value more than just the profits of used car operations. They actually hope to obtain multiplier effect in the replacement of the used car market. Replacement of used cars with new ones will bring new car sales several times that of used cars.

According to data from the Traffic Management Bureau of the Ministry of Public Security, as of the end of 2011, the number of motor vehicles in China was 225 million, of which 106 million were vehicles. The number of motor vehicles in Beijing exceeded 4.7 million, and the number of motor vehicles in cities such as Tianjin and Shanghai exceeded 2 million, while the number of motor vehicles in 23 cities exceeded the million mark. The huge amount of motor vehicles also brings growth potential to the replacement of used cars in the future.

A professional agency estimates that if a developed country is used as an example, the reasonable size of a second-hand car transaction should be around 1/5 of its holding size, and the current Chinese car ownership has already surpassed 100 million, so the scale of used car trade in China should be About 20 million vehicles. The volume of second-hand cars will exceed 5 million this year, leaving a lot of space for this number from 20 million vehicles. The replacement market will become an important market for new car dealers to acquire incremental resources and increase the number of existing customers, and become an important force for the transformation of car marketing models.

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