China Automobile Dealers Association: The national second-hand car market transaction volume in December was 1.9 million vehicles, an increase of 6.42% compared to the previous month.

In December 2024, the China Automobile Dealers Association released a document stating that the national second-hand car market transaction volume reached 1.9 million vehicles, an increase of 6.42% month-on-month and 14.40% year-on-year, with a transaction amount of 119.962 billion yuan. From January to December 2024, the cumulative transaction volume of second-hand cars reached 19.6142 million vehicles, a year-on-year increase of 6.52%, an increase of 1.2008 million vehicles compared to the same period last year, and a cumulative transaction amount of 1.285205 trillion yuan. In December 2024, the transaction volume of the second-hand car market reached 1.9 million vehicles, reaching a historical new high. Unlike previous years where the market started low and ended high, this year, the second-hand car market showed a U-shaped trend. In the first quarter, it continued the market trend at the end of 2023, with transaction volume continuing to expand and a 7% year-on-year increase. However, in the second and third quarters, impacted by the intense competition in the new car market, the second-hand car market experienced a bottoming-out process in sales volume. The Second-hand Car Dealer Index has been hovering around 42% since May, showing significant characteristics of a sluggish market. In response to the "Several Measures to Support Large-scale Equipment Renewal and Exchange of Consumption Goods" jointly issued by the National Development and Reform Commission and the Ministry of Finance, various regions across the country have successively introduced detailed subsidy policies for car replacement and renewal since September. According to data from the Ministry of Commerce, as of December 19, nearly 2.7 million vehicles have been scrapped and renewed, and over 3.1 million cars have been replaced, totaling 5.8 million vehicles. Driven by this policy, the second-hand car market reached a peak in transactions, with a 9.7% year-on-year increase in the fourth quarter. In 2024, the second-hand car market showed a series of distinct characteristics. Among them, the strengthening trend of cross-regional circulation is particularly prominent. In December, the transfer rate of second-hand cars has exceeded 30%, an increase of 1 percentage point from the same period last year. This indicates that consumers' choices for second-hand cars are becoming more diversified and cross-regional, and the activity of the second-hand car market is constantly increasing. Meanwhile, thanks to the continuous increase in the number of new energy vehicles, the market for second-hand new energy vehicles is also showing a vigorous development trend, with the annual transaction volume successfully breaking the 1 million mark. Strong policy support, changes in consumer structure, and the continuous emergence of innovative models have all provided strong support for the vigorous development of the new energy used car market. However, behind the vigorous development of the second-hand car market, the industry's profitability faces significant challenges. The price war in the new car market has led to continuous low prices for buying and selling second-hand cars, resulting in a general decrease in the gross profit margin per vehicle for second-hand car distribution companies in 2024. Among the top 100 second-hand car dealers, 49 have a gross profit margin per vehicle between 4% and 6%, 29 have less than 4%, and only 4 have a margin above 10%. This data clearly reflects that second-hand car distribution companies are facing significant profit pressure while also dealing with market competition. Looking ahead to 2025, the second-hand car market will face the dual challenges of the price war in the new car market and industry transformation. To address these challenges, the industry must accelerate its iterative upgrading and turn crises into opportunities. Enterprises need to innovate marketing methods, promote the transformation from brokerage to distribution, and adapt to market and consumer needs. The second-hand car industry will continue to develop towards branding, specialization, and digitization, continuously improving service quality and brand image to meet the growing demands of consumers and promote the sustainable and healthy development of the industry. Analysis of the Vehicle Type Structure of Second-Hand Car Transactions in December 2024 Passenger car situation: In December, a total of 1.0924 million basic passenger cars were traded, an increase of 7.23% month-on-month and 12.11% year-on-year; 254,900 SUVs were traded, an increase of 5.13% month-on-month and 16.65% year-on-year; 123,600 MPVs were traded, an increase of 8.10% month-on-month and 15.11% year-on-year; and 46,900 cross-passenger cars were traded, an increase of 6.96% month-on-month and 31.02% year-on-year. Commercial vehicle situation: 103,700 passenger cars were traded, an increase of 5.77% month-on-month and 8.93% year-on-year; 150,000 trucks were traded, an increase of 3.51% month-on-month and 17.33% year-on-year. In December, the national second-hand car market was active, with both the passenger car and commercial vehicle markets showing steady growth. Transaction volumes for various types of vehicles all achieved positive growth, with a significant year-on-year growth rate, further confirming the overall warming trend of the market. From January to December 2024, a total of 15.6741 million passenger cars were traded, an increase of 6.07% year-on-year. Among them: a total of 11.3094 million basic passenger cars were traded, an increase of 3.79% year-on-year; 2.6409 million SUVs were traded, an increase of 11.04% year-on-year; 1.2498 million MPVs were traded, an increase of 9.50% year-on-year; and 474,000 cross-passenger cars were traded, an increase of 31.40% year-on-year. A total of 2.664 million commercial vehicles were traded, an increase of 3.67% year-on-year. Among them, 1.5776 million trucks were traded, an increase of 5.37% year-on-year; and 1.0864 million passenger cars were traded, an increase of 1.28% year-on-year. From January to December, the national second-hand car market maintained a steady growth trend, with both the passenger car and commercial vehicle markets showing good market performance. Various subcategories of vehicle types all achieved different degrees of positive growth, with the growth of cross-passenger cars and trucks being particularly prominent. Analysis of Vehicle Age in December 2024 In December, the proportion of second-hand car transactions in the age range of 3-6 years was the highest, accounting for 50.44%, an increase of 0.59% month-on-month and 3.22% year-on-year; the proportion of vehicles aged less than 3 years was 26.49%, a decrease of 0.12% month-on-month and 2.02% year-on-year; vehicles aged 7-10 years accounted for 15.76%, a decrease of 0.26% month-on-month and 1.44% year-on-year; vehicles aged over 10 years accounted for 7.31%, a decrease of 0.21% month-on-month and an increase of 0.25% year-on-year. In December, the proportion of vehicle transactions in the 3-6 year age range had already reached 50%, with increases compared to the previous month and the same period last year. The proportion of transactions for older vehicles continued to decline, reflecting a clear trend of consumers' increasing preference for newer vehicle sources. Analysis of the Six Regions in December 2024 Used car trading situation in six major regions in December 2024 In December 2024, the second-hand car market in China continued to show a steady growth trend, with trading volumes increasing in all regions. The North China and East China regions maintained strong growth momentum, with significantly increased trading volumes, becoming the main driving force behind market growth. Other regions also maintained a stable growth pace. The second-hand car market in East China overall showed a steady growth trend, with a trading volume of 570,100 vehicles, a month-on-month increase of 10.23%, an increase of 52,900 vehicles compared to the previous month. This month, the trading volumes in various provinces in East China all saw a significant increase. Shanghai, in particular, saw a month-on-month increase of up to 29.2%, leading the country. Jiangsu saw a month-on-month increase of 10.4%, while Zhejiang saw an increase of 8.7%. Anhui's market saw rapid growth this month, with a month-on-month growth rate of 19.1%, while Fujian and Jiangxi also saw double-digit growth rates this month. The market in Shandong saw a relatively modest growth of 4.2% compared to the previous month. The trading volume of second-hand cars in the Central-South region was 528,000 vehicles, with a month-on-month increase of 5.67%, an increase of 28,300 vehicles compared to the previous month. This month, the trading volume of second-hand cars in Guangxi saw rapid growth, with a month-on-month growth rate of 13.9%. Hunan and Hainan provinces also performed well, with month-on-month growth rates of 9.1% and 8.5% respectively. Guangdong, as an economic powerhouse in the Central-South region, continued to show steady growth this month with a month-on-month increase of 6.5%. Hunan's market saw a relatively small increase this month, with a month-on-month growth of 3.9%. The market in Henan saw a slight decline this month, with a month-on-month decrease of 3.3%. The trading volume of second-hand cars in North China was 256,700 vehicles, with a month-on-month increase of 8.34%, an increase of 19,800 vehicles compared to the previous month. Beijing and Tianjin, as the core cities of this region, played leading roles. Beijing saw a month-on-month increase of 6%, while the Tianjin market was more active with a month-on-month increase of 8.9%. This month, the market in Hebei showed strong growth momentum, with a month-on-month growth rate of 11.2%. Shanxi also maintained a steady growth of 8.0%, further driving the overall trading volume in North China. In comparison, the market in Inner Mongolia saw a relatively modest growth of 2.5% compared to the previous month. The Southwestern region traded a total of 305,100 vehicles this month, with a month-on-month increase of 2.42%, an increase of 7,200 vehicles compared to the previous month. This month, the market in Yunnan stood out, with a month-on-month growth rate of 12.2%, being the main force driving growth in the Southwest region this month. The trading volumes in Chongqing and Tibet increased by 5.6% and 4.3% respectively, while Guizhou also saw a 2.2% increase. The market in Sichuan showed slightly weak performance, with a 3% decrease compared to the previous month. In December, the Northeast region traded a total of 139,500 vehicles, with a month-on-month increase of 4.24%, an increase of 5,700 vehicles compared to the previous month. This month, Liaoning saw a month-on-month increase of 3.9%, while Heilongjiang maintained a 3.7% increase, and Jilin's market showed more prominent growth, with a month-on-month growth rate of 5.2%, providing strong support for the overall growth of the Northeast region. In December, the Northwestern region traded a total of 100,800 vehicles, with a month-on-month increase of 0.7%, an increase of 700 vehicles compared to the previous month. This month, Shaanxi's market showed outstanding performance, with a month-on-month growth rate of 10%. Qinghai saw a 7.8% increase this month. However, markets in Gansu, Ningxia, and Xinjiang all saw varying degrees of decline, with declines ranging from 2% to 5%. Inter-regional circulation in 2024 In December, the transfer rate of second-hand cars was 30.23%, up 0.43% from the previous month, and up 0.96% from the same period last year. The total number of second-hand car transfers was 574,400 vehicles, a month-on-month increase of 7.97%, and an increase of 18.15% compared to the same period last year.