2020 second-hand car circulation industry development

2. Large fluctuations occurred in each month affected by the epidemic

From the perspective of the monthly second-hand car trading, the market growth rate in May 2019 reached the lowest point in the year, and the market increased significantly in June, which was due to the early implementation of the National Six in some regions, and the centralized replenishment of inventory by dealers for the second half of the year, thereby increasing the trading volume. In September, the market growth rate began to accelerate, and the growth rate was more than 7% for four consecutive months. In December, it reached 1.68 million vehicles, an increase of 21.9% year-on-year, and the transaction volume was the highest value since the data began to be compiled. Affected by the epidemic, from January to June 2020, the monthly transaction volume of used cars was 5.516 million, down 19.6% year-on-year. In the first half of the year, only May increased slightly from the same period last year, and the rest of the used cars in the month of the same period were negative growth, of which the transaction volume in February fell the most, down 91.2% year-on-year.

In 2019, China's used car manager index showed obvious seasonal characteristics, and the whole year showed a basic trend of low before and high after. Affected by the Spring Festival holiday, the second-hand car trade fluctuated greatly from January to March, the market performance gradually better than the manager's expectations from April to July, and the manager's confidence was sufficient from August to November, and the market trading was further active. The used car manager index in January and February 2020 declined compared with the same period in 2019, of which trading activity in February hit a historic low, and managers' confidence in the market was insufficient. After the full resumption of work in March 2020, the trading volume began to pick up, and the index gradually recovered.

3. There are obvious differences in different regional markets

In 2019, according to regional statistics, East China accounted for the largest proportion of second-hand car transactions, reaching 33.4%, followed by Central and Southern China, North China, Southwest China, Northeast China and Northwest China. Among them, East China and South China region with relatively high economic level accounted for 57.8% of the total trading volume, down 0.3 percentage points from the previous year; The Northeast and Northwest regions, with a lower share, together accounted for 13.5% of the total transaction volume, up 1.3 percentage points from the previous year. From January to June 2020, the proportion of trading volume in East China, Central and South China, Southwest and Northeast regions increased, while the proportion of trading volume in North China and Northwest regions decreased. Among them, East China and South China accounted for 58.6% of the total transaction volume, an increase of 0.8 percentage points compared with 2019.

According to the statistics of provinces, Guangdong Province accounted for the largest proportion of second-hand car transactions in 2019, at 12.6%, and the top 10 provinces accounted for 66.8% of the total transactions, down 1.3 percentage points compared with 2018. From the perspective of provincial transaction volume growth, due to the comprehensive cancellation of the second-hand car relocation restriction policy in Shandong Province, the market activity has been greatly improved, and the transaction volume growth rate in 2019 has reached 20.5%; Three provinces saw a year-on-year decline in trading volume, followed by Henan (-3.0%), Hebei (-0.5%) and Jiangsu (-0.2%).

From January to June 2020, the province with the largest second-hand car transaction volume was Guangdong Province, with a total transaction volume of 668,000 vehicles, down 8.2% year-on-year, and the top 10 provinces accounted for 64.6% of the total transaction volume. Affected by the epidemic, the trading volume of the top 10 provinces declined year-on-year, with 3 provinces experiencing a year-on-year decline of more than 30%.

1. Suvs are significantly better than the overall market

From the perspective of market segmentation, the second-hand passenger car transaction in 2019 was 11.425 million, an increase of 9.3%, higher than the growth rate of the overall second-hand car transaction volume of 1.4 percentage points, accounting for 76.6% of the total transaction volume, an increase of 1 percentage point over the previous year. Among them, 8.614 million basic passenger cars were traded, an increase of 4.8%, and the growth rate was significantly lower than the market as a whole; It accounted for 57.7 percent of the total transaction volume, down 1.8 percentage points from the previous year. 957,000 MPVS were traded, up 22.4% year-on-year; It accounted for 6.4% of the total transaction volume, an increase of 0.8 percentage points over the previous year. SUV transactions of 1.481 million, an increase of 30.4%, a significant increase; It accounted for 9.9% of the total transaction volume, an increase of 1.7 percentage points over the previous year. 373,000 cross-type passenger cars were traded, up 20.1% year on year; It accounted for 2.5% of the total transaction volume, an increase of 0.3 percentage points over the previous year. 2.782 million commercial used cars were traded, up 3.4% year on year; It accounted for 18.6% of the total trading volume, which was basically the same as the previous year. Among them, 1.369 million trucks were traded, an increase of 11.9%, the growth rate was significantly higher than the market as a whole; It accounted for 9.2% of the total transaction volume, an increase of 0.3 percentage points over the previous year. Passenger cars traded 1.414 million units, down 3.7% year-on-year; Accounted for 9.5% of the total transaction volume, down 1.2 percentage points over the previous year.