The domestic used car market has now bid farewell to the stage of rapid growth and is gradually entering a new cycle of normalized development with moderate growth and steady quality improvement.

A reporter from "China Business News" learned from China Automobile Dealers Association that in April 2026, the national used car transaction volume was 1.6712 million, a month-on-month decrease of 6.73% and a year-on-year decrease of 1.76%; From January to April, a total of 6.4932 million vehicles were traded, a year-on-year increase of 2.93%, an increase of 184,600 vehicles compared with the same period last year.

"In April 2025, the transaction volume of used cars reached 1.7013 million, which was at a high level in the same period in recent years. With such a high base, there was only a slight decline of 1.7% year-on-year in April this year, and the volume was basically the same as the same period last year, indicating that the current endogenous power of the used car market is relatively stable." Lu Guangzhi, deputy director of the Information Department of China Automobile Dealers Association, analyzed that the continuous efforts of trade-in subsidies and the national cancellation of relocation restrictions have not only stabilized the supply of replacement end vehicles, but also fully activated terminal consumption demand, providing support for the smooth and orderly operation of the used car market.

Used car consumption habits accelerate differentiation

"Pressure" is the general feeling of people in the auto industry about the auto market this year. Although the used car market is also facing market pressure, it is still generally in a recovery trend.

Based on the statistics released by China Automobile Dealers Association from January to April, the total volume of used car transactions increased steadily year-on-year, mainly due to the drive of commercial vehicles and some sub-models.

On the one hand, production and operations continued to recover, providing strong support for the growth of the truck and passenger car market. From January to April, a total of 556,400 trucks were traded, a year-on-year increase of 8.51%; 387,100 passenger cars were sold, a year-on-year increase of 9.79%.

On the other hand, with the trend of diversification of consumer demand, SUVs and MPVs continue to increase their market acceptance due to their multi-functional attributes and scenario adaptation capabilities, becoming the main growth drivers of the passenger car used car market, hedging against the basics to a certain extent. A slight decline in passenger cars. Data shows that from January to April, a total of 862,100 SUV models were traded, a year-on-year increase of 2.40%; a total of 458,400 MPVs were traded, a year-on-year increase of 11.49%.

The reporter noticed that low-age models are still the most popular models, while the proportion of older models has shrunk. Data showed that in April, the proportion of transactions involving vehicles aged 3-6 years was the highest, reaching 44.10%, an increase of 1.0 percentage points from the previous month; sales of vehicles aged within 3 years accounted for 31.15%, an increase of 1.3 percentage points from the previous month and a year-on-year increase of 4.2 percentage points; Models aged 7-10 years accounted for 15.36%, and 9.39%, down 0.9 and 1.3 percentage points from the previous month, and down 2.3% and 2.2% respectively year-on-year. 1-4 In March, the proportion of quasi-new cars within three years rose to 29.9%, a year-on-year increase of 2.8 percentage points, while the proportion of the traditional main range in 3-6 years fell to 43.4%, a year-on-year decrease of 3.5 percentage points.

"The consumption habits of used cars are accelerating the differentiation. On the one hand, the popularity of quasi-new cars continues to rise, and young users are in strong demand for lower-age models. On the other hand, the acceptance of high-age economic models is also expanding, and the age structure is developing in a diversified and balanced direction." Lu Guangzhi said.

From a price perspective, low-end cars account for the majority of market consumption, the mid-to-high-end market fluctuates greatly, and market consumption preferences are further closer to affordable models. Data shows that in April, the vehicle market with used car transaction price range below 30,000 yuan accounted for the largest proportion, accounting for 29.7%, an increase of 2.2 percentage points month-on-month. This was followed by vehicles worth 50,000 to 80,000 yuan, accounting for 22.2%, an increase of 0.1 percentage points month-on-month. Models with 30,000 - 50,000 yuan accounted for 20.3%, and models with 80,000 - 120,000 yuan accounted for 9.8%. The proportion of 120,000 - 150,000 yuan was 5.1%, a decrease of 2.6 percentage points month-on-month; models with 150,000 - 300,000 yuan accounted for 10%, an increase of 1.1 percentage points month-on-month; models with more than 300,000 yuan accounted for only 3%, a decrease of 0.3 percentage points month-on-month.

New energy used car trading volume increased by nearly 30% year-on-year

As the penetration rate of new energy vehicles crosses the watershed of 60%, the market acceptance of used new energy vehicles is also getting higher and higher.

According to data disclosed by China Automobile Dealers Association, in April 2026, a total of 143,200 new energy used vehicles were traded nationwide, an increase of 2.4% from March and an increase of 21.6% from the same period last year. From January to April 2026, a total of 547,900 new energy used vehicles were traded nationwide, an increase of 29.1% compared with the same period in 2025. In terms of market penetration, the penetration rate of new energy used vehicles in April was 8.57%, an increase of 0.8 percentage points from March, and the market share rebounded.

"In the long run, as the number of domestic new energy vehicles continues to increase, the source of used cars continues to expand, the combined increase in consumer recognition and the increasingly mature service system, the new energy used car market shows steady growth and continues to improve development trend." Lu Guangzhi said.

It is worth noting that the consumption upgrading trend in the new energy used car market is obvious, the popularity of mainstream entry-level models has dropped significantly, and mid-to-high-end models continue to rise. Data shows that in April, among new energy used passenger vehicles, A00 cars accounted for 15.4%, down 2.6 percentage points month-on-month; B-class cars accounted for 13.2%, and C-class models accounted for 6.7%, up 0.5 and 0.3 percentage points respectively from the previous month.

The new energy used car market is still dominated by lower-age models with more liquidity, and the circulation pressure of higher-age models is greater. Data showed that in April, models with a service life of less than 2 years accounted for 30.2%, an increase of 0.5 percentage points month-on-month. The transaction volume of models with a service life of 2-4 years accounted for 44.5%, which was basically the same month-on-month. Models with a service life of 4-6 years accounted for 13.4%, a month-on-month increase of 0.5 percentage points. 12% have a service life of more than 6 years, a month-on-month decrease of 0.9 percentage points.

The increase in hedging ratio is another major attraction in the new energy used car market. Judging from the data in May, the hedging rate of domestic new energy vehicle brands represented by Tengshi, BYD and NIO rose against the trend month-on-month.

"This shows that consumers 'acceptance of used cars of independent new energy brands is currently greatly increasing." Li Ming, a researcher at the refined estimation data of the strategic partner of the China Automobile Dealers Association, analyzed that at present, independent brands have gotten rid of the single "cost-effective" label and established a moat of their own technology in the fields including high-end smart driving and power replacement, which provides support for the increase in the value preservation rate of domestic new energy vehicle brands.

Judging from the data in May, the trend of the hedging rate of used new energy cars showed a differentiated trend: due to the fierce "price war" of plug-in models in the new car market, coupled with the sentiment of car dealers to avoid risks and lower prices in the off-season, the prices of used plug-in models fell; Benefiting from the price correction of new cars of the leading pure electric brand and consumers 'pragmatic demand for the "low cost of use" transportation attribute in the context of high oil prices, confidence in the pure electric market has been steadily restored.

"On the one hand, the increase in the hedging rate of pure electric vehicles is due to the fact that the price of used pure electric vehicles has dropped to a relatively low level, and there is currently limited downside. On the other hand, used car consumers are paying more and more attention to the practicality and economy of vehicles." Li Ming said that especially in the context of the current high oil prices, pure electric models have low operating costs and the superimposed charging network continues to improve, providing solid support for the price of pure electric used cars.

How to break the era of trillion-level stock competition?

In May, the used car market continued its recovery trend. Data shows that in the first three weeks of May, the average daily trading volume of the used car market was 71,500 units, 73,600 units, and 74,000 units respectively. It was higher month-on-month for three consecutive weeks. Market activity continued to increase, and market performance was better than the same period in April.

However, it should be noted that although the used car market showed a steady and rising trend in May, the pressure on the used car market cannot be underestimated.

According to the latest issue of the "China Used Car Managers Index"(UCMI) released by China Automobile Dealers Association, the Used Car Managers Index in May was 46.4%, a year-on-year increase of 1.5 percentage points and a month-on-month increase of 1.3 percentage points. According to the definition given by China Automobile Dealers Association, the index is above 50%, indicating that the demand in the used car market is expanding and the prosperity is relatively high. An index below 50%, indicating that the demand in the used car market is weak and the prosperity is low.

"This reflects that the overall market is still depressed." Xiao Yunfei, the relevant person in charge of the Industry Coordination Working Committee of China Automobile Dealers Association, pointed out that although the used car managers index increased slightly in May, it was mainly due to a seasonal recovery after the off-season and has not yet formed a trend recovery trend.

Survey data released by China Automobile Dealers Association also showed that in May, 90.2% of used car managers believed that their operating conditions were at an "average" level, and the proportion who believed that their operating conditions were good increased slightly from the previous month, indicating that the overall operation of used car dealers remains under pressure.

According to Li Ting, director of the Used Car Business Department of China Automobile Dealers Association, judging from the current development situation of the industry, the current used car industry is at a critical turning point in the transformation of old and new momentum, and change is already the general trend. In 2025, the national used car trading volume will exceed 20 million, with a transaction amount of nearly 1.3 trillion yuan. The industry has entered an era of trillion-level stock competition. The used car industry has traditionally relied on vehicle price differences. The profit model of extensive offline operations has gradually failed. Increasing income without increasing profits, homogeneous competition, and intensified operating pressure have become pain points in the industry.

The original industrial logic, business model and profit system can no longer adapt to the development trend of the new stage. Li Ting believes that pain points such as opaque vehicle conditions, inconsistent service standards, insufficient coordination in the industrial chain, and weak trust systems are still restricting the development of scale, standardization and branding in the industry.

Based on industry changes and actual pain points, the consensus in the industry is that the core of restructuring and breaking the situation lies in breaking down inherent barriers and abandoning backward models.

"The so-called reconstruction covers four aspects: first, value reconstruction, from a single price difference to comprehensive service value; second, circulation reconstruction, from regional segmentation to efficient circulation across the region; third, ecological reconstruction, from solo fighting to industrial chain synergy and win-win; fourth, technological reconstruction, from traditional experience to digital intelligence empowerment." Li Ting pointed out that enterprises in the industry still need to insist on empowering them with "renewal" and activate new growth momentum for the industry. If reconstruction is a profound change in scraping bones and treating poison, then renewal is a new breakthrough born in the sun-focusing on the five dimensions of product structure, service form, brand image, development vitality, and industry reputation to comprehensively rejuvenate, breaking the inherent label of the industry, upgrade service experience, innovate business models, cultivate new growth points, and let the traditional used car industry glow with the vitality and vitality of the new era.

Source: China Business News, China Online Automobile

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