Science and technology + ecology boost industrial development

Roland Berger expects that under the joint promotion of industry participants and regulatory policies, all aspects of China's second-hand car circulation will be more transparent. By 2023, the financial penetration rate of used cars will reach 38%; By 2025, that figure will rise to 48%.

In recent years, participants in the used car industry at home and abroad have focused on consumers and created value for users through a series of initiatives. Roland Berger summarized it as "an ecosystem, a golden key", that is, ecological model innovation aimed at consumer value creation, and through the "golden key" of scientific and technological innovation, activate the ecosystem.

China's second-hand car ecosystem can be composed of supply and demand subjects (owners and vehicle sources), circulation service subjects (including vehicle trading, vehicle circulation, vehicle finance, vehicle services, vehicle life, enabling support and travel, etc.) and policy and regulatory subjects (including policy making departments, financial regulatory departments, consumer protection departments, urban management departments and industry associations, etc.).

The creation of the second-hand car ecosystem will meet the core demands of supply and demand subjects, improve the operation efficiency of circulation service subjects, and help solve the pain points of the standardized development of the industry from the policy and supervision side.

With the establishment of the second-hand car ecosystem and the evolution of cars into "Computer-on-Wheel", a new business model characterized by "three separates" (namely "soft and hard separation, human-vehicle separation, car-electric separation") is taking shape, and technology is the key kinetic energy for the formation of second-hand car finance related business models and new business models.

Zheng Yun, head of Roland Berger Automotive Industry Center and global Senior Partner, said: "By 2035, the profit share of the front end of China's automotive value chain will decline from 54% in 2020 to 26%, while the profit share of the automotive aftermarket and mobility business will achieve significant growth. Looking to the future, China's used car finance and ecology are expected to usher in considerable development."