China's used vehicle market has experienced a significant surge, with sales increasing by 15.6 percent year-on-year in the first half of 2023, reports China Daily on July 17. Data from the China Automobile Dealers Association reveals that approximately 8.77 mn used vehicles were sold during this period, amounting to a transaction value of $77.03 bn. In June alone, 1.53 mn used vehicles were traded, marking an 8.24 % increase compared to the previous year.
This surge in the used vehicle market can be attributed to the implementation of revised government policies. The Ministry of Public Security simplified the registration process for second hand cars in June, enabling applicants to use their resident identity card for transferring ownership of small noncommercial passenger vehicles outside their registered residence. This policy change has significantly streamlined registration procedures and contributed to a slight market recovery.
The China Automobile Dealers Association predicts that the domestic second hand vehicle market will reach a significant milestone of 20 mn units this year, surpassing the previous record of 17 mn units. The market's resurgence and increased confidence stem from the support provided by government policies. Recent policy briefings emphasised the abolition of restrictions on used car transfers, creating a favourable environment for the market and removing barriers for consumers. Additionally, regulations were introduced to limit individuals from transferring more than three vehicles within a year, driving the market towards organised and quality-oriented development.
To further enhance the second hand vehicle industry, the China Automobile Dealers Association released a set of standards for second hand vehicle dealership services during the 2023 China Used Car Assembly. These standards aim to address transaction and usage process shortcomings by outlining requirements for service, sales management, and service improvement in secondhand car dealerships.
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