China aims to double its used car market to 2 trillion yuan ($306
billion) with yearly sales of 25 million cars by slashing taxes on
secondhand car dealings, Bloomberg reported in its January story titled
China Wants to Build a $306 Billion Used-Car Market From Scratch.
Although China has more than 270 million vehicles on its roads, only
an estimated 15 million secondhand models were sold in 2019. That's in
sharp contrast to places such as Australia, the UK and the US, where
people buy more used cars than new ones, Bloomberg said.
In China, buying a first car or first home was typically a big deal, a
declaration of social status and a symbol that not only the person but
also the whole family had arrived. In recent years that mindset has
shifted, Bloomberg pointed out, and forking over extra money for a new
car when a perfectly good secondhand one is available is considered to
make more economic sense by more Chinese. The changing attitudes will
ignite demand for used cars, according to the China Automobile Dealers
Uxin, a Nasdaq-listed used car e-commerce site, saw total sales of
2,653 vehicles for the three months ending Sept 30, versus 1,702 in the
second quarter of 2020. "Secondhand trading will definitely accelerate
over the next five years, and the policy changes are enabling companies
like ours to grow," Dai Kun, chairman of Uxin, said.
China's used car market saw steady growth, said Luo Lei, deputy
secretary general of CADA, adding the surge in used car inventory and
policy support will ensure the growth, and digital technology and mobile
internet will also be facilitators.