Cui Dongshu reported that in October 2025, China's used car market recorded 1.76 million transactions, down 2% month-on-month but up 2.7% year-on-year, with transaction value reaching RMB 111 billion, a 0.8% annual decline. From January to October 2025, cumulative used car transactions hit 16.49 million units, rising 3.5% YoY, while transaction value reached RMB 1.0572 trillion, up 0.6%. The inter-provincial transfer rate for used cars, historically fluctuating between 25-30%, surged to a record 33.1% in October 2025.
In October, new energy used car transactions stood at 148,000 units, declining 7% MoM but jumping 42% YoY, with an 11.2% penetration rate. Year-to-date NEV used car sales reached 1.284 million units, surging 44%. Cui noted that compared with advanced international markets, China's used car transaction ratio remains relatively low. Given China's late automotive market development, the used car sector is now experiencing rapid growth with enormous potential, particularly as NEVs offer cost advantages to mainstream consumers.
1. Industry Reaccelerates Growth After robust 2023-2024 performance, used car sales weakened in H1 2025 due to Lunar New Year effects but gradually recovered from June-September before softening again in October. The market has expanded significantly from 12.4 million units in 2017 to 19.61 million in 2024, adding 7.2 million transactions over seven years. Transaction prices remain stable amid product diversification, benefiting the overall market.
2. Structural Shifts SUVs and MPVs continue gaining share in used car transactions, while passenger vans shrink. Mirroring new car trends, the market is upgrading toward premium SUVs/MPVs.
3. Vehicle Age Dynamics Younger used cars (especially NEVs) dominate, with 3-6-year-old vehicles comprising 44.1% of transactions Jan-Oct 2025, while older cars (11.4%) grow steadily. Improved vehicle technology enhances reliability of aged models, boosting scrappage-replacement potential. Unlike mature markets where 5+ year-old cars dominate, China sees higher shares of 1-5 year-old used vehicles.
4. Price Trends The RMB 30,000-50,000 segment expanded notably, while sub-RMB 30,000 models declined slightly in 2025.
5. NEV Used Cars Surge October's 148,000 NEV used car transactions (-7% MoM, +42% YoY) lifted penetration to 11.2%, up from 3.6% in 2022. Year-to-date volume hit 1.284 million (+44%). As NEV ownership grows, used NEV transactions are expected to rise further with market stabilization.
6. NEV Age Profile Q4 2025 saw under-2-year-old NEV used cars jump to 37.3% share, while 2-4-year-old models held steady at 37.7%. The 4-6-year segment accounted for 12%, and over-6-year vehicles grew to 12.9%, reflecting an increasingly active young-vehicle market.
7. NEV Pricing The RMB 50,000-80,000 NEV used car segment expanded significantly, while sub-RMB 30,000 models declined amid scrappage/replacement policies that enhance residual value recognition.
8. Inter-Provincial Transfers October's record 33.1% transfer rate reflects improved logistics. Beijing and Shanghai remain major used car exporters, while Anhui, Shandong, and Jilin are key destinations.
9. Inventory Pressure Eases October 2025 inventory levels dipped slightly, with 35% aged 30+ days (flat YoY), 32% at 15-30 days, and 34% under 15 days. New car price declines have compressed used car margins, creating operational challenges.
10. Resale Values Stabilize Post-Q1 price adjustments, brands have recalibrated market positioning. NEVs maintain lower 3-year retention rates, typical in fast-evolving markets.
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