From January to October 2025, China’s cumulative used NEV transactions reached 1.284 million units, up 44% YoY.
On December 5, Cui Dongshu, secretary-general of the China Passenger Car Association (CPCA), released the latest data showing that China recorded 1.76 million used-car transactions in October, down 2% from September but up 2.7% year-on-year (YoY).
Total transaction value reached RMB 111 billion ($15.54 billion), a slight decrease of 0.8% from a year earlier.
From January to October 2025, the national used-car market recorded 16.49 million transactions, an increase of 3.5% YoY, with total transaction value rising 0.6% to RMB 1.0572 trillion ($148.01 billion).
New energy vehicles were the main growth driver. Used NEV transactions reached 148,000 units in October, down 7% month-on-month but surging 42% YoY, lifting market penetration to a record 11.2%.
This marks a significant jump from 3.6% at the end of 2022, closely mirroring the rapid expansion of China’s new NEV sales.
For the January–October period, cumulative used NEV sales totaled 1.284 million units, up 44% YoY. Sedans accounted for 60.6% of the volume, followed by SUVs at 14.2% and MPVs at 7.2%.
China’s used-vehicle age structure continues to differ from mature markets such as the U.S., France and Japan, where a large share of used cars are more than five years old. Historically, China’s used-car market has been dominated by nearly new vehicles aged one to five years.
With vehicle ownership expanding and technology maturing, circulation of higher-age vehicles is increasing.
In the first ten months of 2025, vehicles older than six years accounted for 11.4% of used-car sales, while those aged three to six years accounted for 44.1%—both showing clear increases.
In Q4 2025, low-age used NEVs have become more prevalent. NEVs under two years old accounted for 37.3% of used NEV transactions, while those aged 2–4 years accounted for 37.7%.
Vehicles aged 4–6 years held a 12% share, and those over six years rose to 12.9%, showing a notable increase from last year.
Pricing trends in the past two years have shifted toward practicality. From January to October, used vehicles priced between RMB 30,000–50,000 ($4,200–$7,000) accounted for 4.29 million transactions, rising to a 26% share.
Vehicles under RMB 30,000 ($4,200) reached 5.2 million transactions, lifting their share to 32%.
For used NEVs, models priced between RMB 50,000–80,000 ($7,000–$11,200) increased to a 12.1% share, reflecting an influx of older NEV models entering the scrappage and replacement cycle.
With China’s trade-in incentives advancing, the share of used NEVs priced below RMB 30,000 ($4,200) fell from 37.4% last year to 30.2%.
Inventory levels improved in October: vehicles held over 30 days accounted for 35%, unchanged YoY; those held 15–30 days made up 32%; and vehicles held for less than 15 days represented 34%.
A more stable inventory structure has helped ease operational pressure, although continued declines in new-car prices are narrowing the resale price gap and squeezing dealer margins.
Industry data suggest NEVs are becoming the true incremental driver of China’s used-car market.
Despite still-low three-year retention rates—42.4% for PHEVs and 41.3% for EVs in November, compared with 48.8% for gasoline vehicles—the trend is not unexpected given the rapid pace of technological change.
Traditional hybrids, constrained by slower efficiency and technology updates, are gradually losing appeal in the used-car market.
Overall, China’s used-vehicle market continues to expand steadily. With lithium carbonate prices stabilizing, higher-age NEV models may see further improvement in residual value.
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