China Automobile Dealers Association: From February 17th to 23rd, the average daily transaction volume in the used car market increased by 4.31% compared to the previous period, showing a trend of recovery.

The China Automobile Dealers Association issued a document stating that in the third week of February (February 17th to February 23rd), the used car market showed a significant recovery trend, with the daily transaction volume reaching 65,600 vehicles, a 4.31% increase from the previous period, and a 2.2% increase compared to the same period in January, indicating that the market has returned to pre-Chinese New Year operating levels. Positive signals continue to be released from the policy side, with the Ministry of Commerce promoting the policy of trading in old cars for new ones forming effective market expectations, combined with the implementation of local replacement subsidy policies, jointly driving the market into a warming cycle. According to statistics, the cumulative transaction volume from February 1st to 23rd reached 1.06 million vehicles, a decrease of 5.8% compared to January, but the decrease in month-on-month rate exceeded 8 percentage points, indicating that the market repair momentum continues to strengthen. Of note, the confidence of dealers has significantly rebounded. According to research, 42% of used car dealers achieved an increase in customer traffic compared to the previous week, and 33% of companies achieved a turnover conversion efficiency exceeding the previous week, reflecting the acceleration of end consumer demand. Market structural improvement features are significant, with a benign interaction between supply and demand. On the supply side, more than half of the dealers actively replenished their inventory, easing the situation of tight supply of high-quality sources. On the demand side, with the post-holiday rush back to work driving the rebound in commuting demand, the proportion of first-time buyers has increased. The price system remains stable, with 67% of companies reporting that transaction prices remained stable compared to the previous week, indicating that the market has entered a healthy channel of supply and demand balance. From the pace of demand release, the average daily transaction volume in the third week increased by 14% compared to the first week, indicating a sharp acceleration in market recovery slope, and it is expected that policy dividends will be accelerated in March, the traditional peak season. It is expected that the volume of used car transactions in February will be around 1.32 million vehicles, a decrease of 9.6% compared to January, and an increase of 9.9% compared to the same period last year. With the release of demand scenarios such as the start of the school season in March, spring recruitment, and continued efforts from the policy side, the industry will enter a new stage of development with both quantity and quality rising. Weekly regional analysis of the used car market This week, the daily average transaction volume of used cars in the six major regions of the country has maintained a steady growth trend. Among them, the growth in the North China, East China, and Northwest regions was relatively fast, while the Central and South regions showed a relatively small increase. Specifically, the daily average transaction volume of used cars in East China this week was 22,100 vehicles, an increase of 6.25% over the previous week. Market flows and transaction volumes in cities such as Shanghai, Xiamen, Linyi, Jinhua, and Wenzhou have all significantly rebounded, with a month-on-month increase of over 30%. At the same time, the performance of markets in Hefei, Nantong, Jining, and Jinan was also outstanding, with a noticeable increase in transaction volume this week. However, the market in Hangzhou faced significant pressure recently, with a decrease in transaction volume by 8.9% this week. The daily average transaction volume of used cars in North China this week was 25,000 vehicles, an increase of 5.39% compared to the previous week. Key areas such as Beijing, Tianjin, Langfang, Taiyuan, and Chifeng all saw significant growth in transaction volume. Beijing's market vitality continued to rise this week, with a 25% increase in transaction volume; Tianjin also saw a growth rate of over 20% this week. Meanwhile, major markets in Taiyuan, Chifeng, and other areas also showed a good upward trend. However, the market in Shijiazhuang showed poor performance recently, with a decrease in transaction volume by 8.2% this week. The daily average transaction volume of used cars in Northeast China was 21,000 vehicles this week, an increase of 4.45% compared to the previous period. Market vitality in cities such as Dalian, Changchun, and Harbin rebounded quickly, with a daily transaction volume increase of over 10%, while Shenyang, Songyuan, and Jinzhou saw a slight decrease in transaction volume this week. The daily average transaction volume of used cars in Southwest China was 13,600 vehicles this week, an increase of 4.65% compared to the previous week. Specifically, cities such as Chengdu, Chongqing, Kunming, and Lhasa all showed a significant rebound in transaction volume this week. Chengdu saw a 6.5% increase in transaction volume, Chongqing increased by 7.2%, Kunming's market growth rate exceeded 15%, and Lhasa also saw a 10% increase in volume this week. However, the market in Guiyang saw a slight decline this week, with a decrease of about 5%. The daily average transaction volume of used cars in Central and South China was 24,000 vehicles this week, an increase of 2.25% compared to the previous week. Looking at the market performance in major cities, Wuhan, Changsha, Jiaozuo, Dongguan, and Haikou stood out. Dongguan and Haikou saw transaction volume increases of over 20%, showing strong market performance; Wuhan, Changsha, and Jiaozuo all saw market growth rates of over 10% this week, showing a good growth trend. However, Guangzhou and Nanning saw a significant decrease in transaction volume this week, with a decrease of over 10%. The daily average transaction volume of used cars in Northwest China was 13,000 vehicles this week, an increase of 5.10% compared to the previous week. In key areas, such as Xi'an, Yulin, Wuzhong, Xining, and Bazhou, the market performance this week has significantly improved. Wuzhong and Xining saw a transaction volume increase of over 30% this week. Xi'an saw a 15% increase in transaction volume this week, Yulin increased by 17%. However, the market performance in Lanzhou was poor this week, with a slight decrease in transaction volume.