China Automobile Dealers Association: The used car market picked up significantly in the first week of December, and the average daily transaction volume increased 3.46% month-on-month

The Zhitong Finance App learned that according to data from the China Automobile Dealers Association, in the first week of December, the used car market showed significant recovery characteristics, with an average daily transaction volume of 67,500 vehicles, up 3.46% from last week. The transaction scale and growth rate both exceeded industry expectations. It is worth noting that NEV used car trading activity continued to rise, accounting for 18.3% this week, an increase of 2.1 percentage points over the previous month, reflecting the accelerated transformation of the market structure to new energy.

This round of growth is mainly driven by two factors: at the channel level, new car dealers launch a “clearance rush” strategy to meet annual sales targets; at the demand level, the peak consumption season effect at the end of the year is evident, and factors such as the distribution of year-end bonuses and increased demand for holiday travel are driving the increase in desire to buy cars.

Looking ahead to the market trend in late December, it will show the characteristics of “high and stable back then”. The promotion intensity of used car dealers may gradually shrink as inventory pressure eases, and the intensity of the price war is expected to weaken; the price of new energy used cars is affected by the transmission of new car price cuts, and there may be a moderate correction, but the overall value preservation rate system is stabilizing. In terms of the regional market, third- and fourth-tier cities are driven by a wave of homecoming. The transaction growth rate is expected to lead the country, and the share of cross-regional circulation may increase to more than 35%.

Used car weekly regional analysis

This week, the overall used car market showed a moderate upward trend. Judging from the specific performance of regional markets, the average daily trading volume in North China, East China, Northwest China, Southwest China, and Central and South China all showed varying degrees of growth. In contrast, the Northeast region's market trend this week was relatively stable.

Specifically, the average daily volume of used cars traded in East China was 251,000 units, an increase of 1.35% over the previous month. Judging from the market transactions in major cities, the used car market volume in Hefei, Xiamen, Nantong, Nanchang, Zaozhuang, Jinan, and Wenzhou all showed an upward trend this week. Among them, the market performance of Wenzhou and Nantong was particularly impressive, with trading volume increasing by more than 20%; the Hefei market also grew significantly this week, with an increase of 12%; in contrast, the Nanchang market experienced a significant decline this week, falling 13.6% month-on-month; in addition, markets in Linyi, Jining, Jinhua and other places also all declined slightly this week, about 5%; Shanghai's trading volume also declined slightly this week, with a drop of about 2%.

The average daily volume of used cars traded in North China was 0.28 million units, an increase of 2.49% over the previous month. This week, the used car trading market in Beijing, Chifeng and other places saw a marked recovery. Among them, the used car trading volume in the Beijing market rose close to 10% month-on-month, and the increase in the Chifeng market reached 20%; while the trading volume in Shijiazhuang, Langfang, Tianjin, Taiyuan and other places experienced varying degrees of decline. Langfang saw a particularly significant decline of 25% this week. The trading volume of the Tianjin market fell 7.1% month-on-month. The Shijiazhuang and Taiyuan markets both fell by around 5% this week.

The average daily volume of used cars traded in the Tohoku region was 0.24 million units, the same as the previous week. This week, the used car market trading activity in several cities such as Shenyang, Dalian, and Jixi showed signs of recovery. Specifically, the volume of used car transactions in the Shenyang market increased 8.9% month-on-month compared to the previous week; the Dalian market also achieved 5.5% growth this week; the Jixi market also performed well, increasing 6.7% month-on-month. In contrast, used car markets in Harbin, Changchun, Jinzhou, and Songyuan saw a slight decline in trading volume this week, falling between 5% and 10%.

The average daily volume of used cars traded in the southwest was 11,500 units, an increase of 4.48% over the previous month. Specifically, the used car markets in Guiyang, Kunming, Lhasa, Chongqing and other cities all showed a good trend of rising transaction volume this week. Among them, the performance of the Kunming and Guiyang markets was particularly impressive, with trading volume both exceeding 15% month-on-month; the Mianyang and Lhasa markets both rose close to 10% this week; while the Chengdu market declined slightly, by about 5%. The trend of the Chongqing market has been stable this week, with no significant fluctuations.

The average daily volume of used cars traded in the central and southern regions was 24,600 units, an increase of 5.56% over the previous month. This week, the used car trading market in Guangzhou, Dongguan, Nanning, Wuhan, Jiaozuo and other cities showed clear signs of recovery. Among them, the growth in the Guangzhou market was particularly prominent, with transaction volume increasing by more than 25% month-on-month; the activity of the used car market in Wuhan and Jiaozuo also increased dramatically, with transaction volume increasing by as much as 20%. In addition, trading volume in places such as Dongguan, Nanning, and Pingdingshan all increased slightly this week; however, the Changsha market experienced a significant decline this week, with trading volume falling 18.5% month-on-month.

The average daily volume of used cars traded in the northwest was 0.11,000 units, an increase of 7.59% over the previous month. This week, used car market transactions in Lanzhou, Wu Zhong, Xining, Bazhou and other places all showed a positive upward trend. Among them, the performance of the Lanzhou market was particularly impressive, with trading volume increasing by 25%; the Bazhou and Xining markets both showed significant growth this week, with the Bazhou market rising 20% month-on-month; the Xining market's growth rate also reached 15% this week; in addition, Wu Zhong's trading volume also showed signs of slight recovery; however, the Yulin market experienced a significant decline this week, with a decrease of more than 20%; the Xi'an market also declined slightly this week, down 5% month-on-month.