2020 second-hand car circulation industry development

In 2019, with the support of a series of policies issued by the state to support the development of the used car industry, and under the background that the demand for replacement has become the main growth driver of the market, China's used car market has achieved bucking the trend. In the whole year, 14.92 million used cars were traded, an increase of 8.0%, and the transaction amount was 935.7 billion yuan, an increase of 8.8%. Used cars have become an important growth pole for the development of China's automobile market.

In 2020, due to the impact of the epidemic, the uncertainty risks and potential pressures faced by the second-hand car market have increased significantly. With the compensatory release of a large number of potential exchange and additional purchase demand after the epidemic, the development environment of the second-hand car market has been significantly improved, and the annual transaction volume of second-hand cars was 14.341 million, down 3.9% year-on-year.

1, the second-hand car industry policy environment continues to improve

Creating a loose and high-quality business environment is an urgent need for the further development of China's second-hand car industry, and it is also an effective way to promote the sustainable and high-quality development of the second-hand car industry. In 2019, the circulation policy environment of China's second-hand car market continued to improve, effectively promoting the healthy and orderly development of the second-hand car market.

In April 2019, the Ministry of Commerce, the Ministry of Public Security and the General Administration of Customs jointly issued the Notice on Supporting the Export Business of Used Cars in mature Areas (Commercial Letter [2019] No. 165), supporting 10 regions to carry out the export business of used cars. Subsequently, the Ministry of Commerce and other relevant departments and local governments have issued a series of policies and measures to support the development of used car exports. The export of used cars can effectively revitalize the stock resources of used cars in China, help to broaden the field of automobile trade and optimize the export structure of automobiles.

In August 2019, The General Office of the State Council issued the "Opinions on Accelerating the Development of Circulation and Promoting Commercial Consumption" (State Council [2019] No. 42), referring to the development of new energy vehicles, the cancellation of purchase restrictions, and the complete cancellation of the second-hand car relocation policy, making it clear that the relocation limit in key areas of air pollution prevention and control should be the first to open. This will help to further loosen the circulation of used cars, active used car trading, and stimulate the potential of automobile consumption.

In May 2020, the implementation of the value-added tax policy of 0.5% reduction on sales of second-hand car dealerships has strongly promoted the development of second-hand car dealerships, and has played a prominent role in promoting the healthy and stable development of the second-hand car market.

2. Build a multi-polar used car market pattern

After years of development, under the dual drive of policy support and consumer demand upgrading, China's used car industry is gradually forming a multi-polar market pattern with the core of "traditional used car trading market + auto manufacturers and dealer groups + used car e-commerce + new forces of car manufacturing".

In 2019, under the background of national policies continuing to help the development of the used car industry, auto manufacturers and dealer groups continued to accelerate the promotion of used car business. By virtue of their own brand resources, advanced management mode and global network layout advantages, automobile manufacturers strengthen the construction of brand certification used car business system, promote the further standardization of the used car market, and gradually develop to scale. Second-hand car e-commerce gradually returns to rational development after structural adjustment, and relies on the experience and advantages accumulated by the early development of digital strategy to achieve "second entrepreneurship". Through the development and application of cutting-edge technologies such as AI, big data and cloud computing, used car e-commerce not only brings new development concepts and advanced technologies to the used car industry, but also creates an innovative used car trading experience for consumers. With the rapid development of China's new energy vehicle market and the growing number of new energy vehicles, new energy vehicles have gradually entered the replacement period, and new energy used cars are expected to become the "after wave" to promote the development of the used car industry, creating new development opportunities and space for the industry.

2. Market operation characteristics

(A) second-hand car market transactions

1, the overall steady growth and development trend

In 2019, the used car market as a whole showed a steady growth trend, and the growth rate fell compared with previous years. The number of used car transactions in China was 14.923 million, an increase of 8.0% over the previous year; Transactions reached 935.69 billion yuan, up 8.8 percent year on year. From January to June 2020, due to the impact of the epidemic, the national second-hand car trading volume dropped significantly, with the trading volume reaching 5.516 million, down 19.6% year-on-year; Transactions were 339.43 billion yuan, down 21.7 percent year on year.