China Averaged 69,500 Daily Used Car Transactions Dec 8-14, East China Led Growth

The year-end seasonal uptick, combined with the spillover effect from strong new car sales, has boosted trading activity in the used car market.

The China Automobile Dealers Association has released the latest weekly used car market report (covering December 8 to December 14).

The report indicates that the used car market continued its recovery trend during the statistical week. The average daily trading volume reached 69,500 vehicles, representing a week-on-week increase of 3.05% and a year-on-year growth of 4.4% compared to the same period in November.

The market recovery is attributed to two main factors. On one hand, the significant pull of year-end seasonal demand and dealers increasing promotional efforts due to declining vehicle residual values with age played a role. On the other hand, the strong sales in the new car market created a synergistic effect, indirectly boosting circulation activity in the used car market.

Looking at specific regional markets, the average daily trading volume showed growth trends in North China, East China, Southwest China, and Central-South China. In contrast, market trends in Northeast and Northwest China appeared relatively weak.

Specifically, the average daily trading volume in East China was 26,200 vehicles, a week-on-week increase of 4.39%. Among major cities, markets like Nanchang, Linyi, Jining, Shanghai, and Jinhua showed growth trends this week. Notably, transaction volumes in the Linyi and Jining markets both increased by about 25% week-on-week.

In North China, the average daily trading volume was 2,900 vehicles, a week-on-week increase of 3.85%. Among these, Tianjin, Shijiazhuang, and Chifeng saw week-on-week growth ranging between 4.5% and 12%, while transaction volumes in cities like Beijing, Langfang, and Taiyuan declined.

In Northeast China, the average daily trading volume was 2,300 vehicles, a week-on-week decrease of 3.28%. This week, market activity significantly decreased in cities like Harbin, Jinzhou, Changchun, and Shenyang. The Harbin market fell by 12% week-on-week, and Jinzhou saw a decline exceeding 15%.

In Southwest China, the average daily trading volume was 11,700 vehicles, a week-on-week increase of 1.57%. Among these, the markets in Kunming and Mianyang performed exceptionally well, with transaction volume growth rates both exceeding 10% week-on-week. Markets in Guiyang and Lhasa showed slight increases of around 5% this week. In contrast, the Chongqing market experienced a minor decline.

In Central-South China, the average daily trading volume was 25,500 vehicles, a week-on-week increase of 3.35%. Among these, Changsha and Pingdingshan showed significant growth, with week-on-week increases both exceeding 15%. For comparison, Guangzhou, Wuhan, and Jiaozou saw noticeable declines of around 10%.

In Northwest China, the average daily trading volume was 1,000 vehicles, a week-on-week decrease of 6.77%. Among these, Lanzhou saw a particularly sharp decline, dropping over 30% week-on-week. Conversely, transaction volumes in Wuzhong and Yulin increased significantly by about 20% this week.