Chinese Auto Brands’ 3-Year Residual Value Hits 53.74%, Tops Japanese Rivals for First Time

Chinese domestic cars posted an average three-year residual value of 53.74% in August, dethroning Japanese rivals for the first time, according to a joint industry report by Cheyigu and the All-China Federation of Industry and Commerce’s auto dealer chamber.

Continuous tech upgrades and broader model lineups pushed domestic makes past Japanese competitors, who averaged 52.39% across the month.

In contrast, Japanese automakers saw a sharp retreat. Their average three-year retention rate tumbled 2.51 percentage points from July to 52.39%.

Japanese brands have long relied on fuel economy and perceived reliability to anchor residual values. However, those traditional moats are rapidly eroding under pressure from smarter Chinese NEVs, while stubborn fuel prices continue to weigh on purchase demand for conventional ICE vehicles.

German and French makes remained largely flat at 50.14% and 35.10%, respectively. Meanwhile, Korean (+2.20 pp), American (+1.31 pp), and British brands (+1.19 pp) posted modest gains, buoyed by narrowing dealer discounts on core models and improving secondary-market liquidity.

By segment, residual values rebounded sharply across the board in August. SUVs led the rally with the steepest gain—surging from 49.24% to 58.47%—while sedans followed at 55.09%. MPVs recovered to 52.08%, with pickups logging milder increases.

Sustained demand for family road trips and outdoor utility, paired with faster secondary-market turnover, kept SUV valuations exceptionally firm.

In the joint-venture sedan segment, the Volkswagen Golf GTI led the pack at 63.56%, followed closely by the standard Golf and the Mazda3 Axela.

Mainstream Chinese-brand ICE sedans saw across-the-board MoM declines ranging between 1.15 and 2.57 percentage points, though the Lynk & Co 03, Changan UNI-V, and Geely Xingrui still locked down the top three spots.

Among imported sedans, the Porsche 911 remained untouchable at No. 1 with an 83.35% residual value. The Maybach S-Class ticked higher, while the Porsche Panamera reclaimed third place.

The SUV leaderboard reflected a similar divergence. The Ford Bronco paced joint-venture models with a 70.94% residual value, trailed by the Toyota Prado and Crown Kluger.

Mainstream Chinese-brand SUVs softened across the board month over month, though the Tank 300 defended its crown at 65.36%. The Haval H9 took the hardest hit, tumbling 5.32 percentage points from 65.57% to 60.25%.

Imported off-roaders continued to command the highest premiums: the Mercedes-AMG G-Class dominated the ranking at 85.31%, with the Lexus LX and standard G-Class rounding out the top three.

Joint-venture midsize-to-large MPVs softened across the board. The Toyota Sienna, Granvia, and Buick GL8 still held the top three spots.

Domestic MPVs also edged lower. GAC Trumpchi’s M8 and M6 claimed the top two positions, followed by the Maxus G50.

Imported luxury MPVs remained an exception. The Lexus LM led the category at 85.99%, while the Toyota Alphard and Vellfire bucked the market trend with modest gains.

Pure electric cars faced broad depreciation pressure in August. Top-tier models shed between 0.32 and 2.77 percentage points month over month.

The Li Auto MEGA posted the highest residual value at 88.07%. The Geely Galaxy Xingyuan took second at 85.54%, followed by the Tesla Model Y at 84.34%. The AITO M9 and Tesla Model 3 rounded out the top five.

The PHEV leaderboard saw an immediate reset. The Denza Z9 GT stormed straight to No. 1 at 88.07%, edging out the Buick GL8 PHEV at 84.22%.

Rugged off-roaders lost their grip on the segment. Valuations pulled back for both the Tank 700 and Tank 500 PHEVs. Meanwhile, the BYD Sealion 05 DM-i broke into the top five on strong retail deliveries.

Boxy 4x4s no longer monopolize the top ranks. Buyers are shifting toward executive MPVs, luxury GTs, and family-oriented crossovers.

August marked an uneven yet historic milestone for China’s secondary auto market. Domestic automakers surpassed Japanese rivals in value retention for the first time on record.

Pricing power, however, remains fragile. Rapid NEV product cycles and frequent new launches continue to weigh on used valuations, repeatedly resetting the industry’s depreciation curve.