China Used Vehicle Market | Used Vehicle Sales China | Car Markets China | Ken Research
by Ashish Kumar Market ResearcherThe
report titled “China Used Vehicle
Market Outlook to 2022 - by Type of Vehicle (Sedans, SUVs, Micro Vans, MPVs,
Trucks, Buses, Cross Type Vehicles, Trailers, Motor Cycles and Low Speed
Trucks), by Vehicle Age, by Distribution Channels, by Region, by Price of
Vehicle” provides a comprehensive
analysis of China’s Used Vehicle market introduction and genesis, market size
by value and volume, market ecosystem, value chain analysis and market
segmentation. The report covers complete snapshot on online used vehicle
market, used vehicle finance market and buying decision parameters. The report
provides a competition scenario with competitive landscape of major players in
China online used vehicle market such as Guazi, Uxin Group and Renrenche. The
report also covers SWOT analysis, future projections along with analyst
recommendation. The report is useful for major organized dealers/Large vehicle
markets, online used vehicle companies, unorganized dealers and auto loan
companies for used vehicles, potential entrants and other stakeholders to align
their market centric strategies according to ongoing and expected trends in the
future.
Market Size:
China
used vehicle market is in its early stage of growth. Globally, China is the
largest market for new vehicles. This combined with falling average age of used
vehicles shows ample scope for growth in the coming years. A gradual shift has
been observed, an increasing number of people are now opting for vehicles under
the age of 3 years.
On
the overall level, China’s used vehicle market size has increased three fold in
last 5 years from 2012 to 2017. Introduction of major online companies such as
Guazi, Uxin Group, and Renrenche has increased the penetration rate of online
companies in China. Online penetration rate has increased in last 5 years as well.
Market segmentation:
By Type: Sedans (basic passenger cars) has remained
the most used type of vehicle in China. SUVs are the second most preferable
type and their sale has amplified from 2015-2017. On the other hand, used Micro
Van sales have augmented from 2015 to 2017. These types of vehicles are mostly
preferred by large families and for commercial purposes. Other types of
vehicles such as Trailer, motorcycles and low speed trucks have registered the
remaining proportionate share in 2017.
By Vehicle Age: Major trade of used vehicle has taken place
within the age bracket of three to ten years. Sale of cars under 3 years of age
is increasing significantly due to growing penetration of online channels and
variety of finance schemes available to the public.
By Region: East China has accounted for majority of
sales of used vehicles during the year 2017. The region covers provinces such
as Shanghai, Jiangsu, Zhejiang, Anhui, Fujian, Jiangxi and Shandong. As of 25th
April 2018, Shanghai has purchasing power parity (PPP) which is second highest
in China. East China accounts for the highest population compared to all other
regions. South Central China has accounted for second largest share in the year
2017. Major provinces covered in south central China are Henna, Hubei, Hunan,
Guangdong, Guangxi, Hainan, Hong Kong and Macau.
Northern
district encompasses Beijing, which is the capital city and commercial heart of
the country with highest PPP. South West, North East and North West districts
accounted for a combined share of around 27% in the total sales volume during
2017.
By
Price: People in China generally prefer to purchase used vehicles in price
range less than CNY 30,000. Cars priced between CNY 30,000-50,000 accounted for
the second highest share.
Snapshot on China Online Used Vehicle
Market:
People
are shifting their preference towards online mode of purchase. Dealers in the
market are charging higher margin which leads to increased final price of the
vehicle. On the other hand, online websites are just charging a small
commission on the transaction value. Online sellers of used vehicle claim to
perform quality checks and fitness test. Online companies list vehicles only
after performing rigorous vehicle inspection. This has enhanced level of trust
of customers over online used vehicle companies leading to a shift in buyer’s
preference.
Snapshot on Used Vehicle Finance
Market:
Loan
on zero percent down payments is also provided, however in such cases, rate of
interest charged has increased in 2017. Used vehicle finance penetration in
China has increased from 2016 to 2017. Major companies which provide used
vehicle financing services in China are 100credit.co, Pingan Bank, Weizhong
Bank, Xin, Ant Financial, DBS, Hong Leong Finance, May Bank, Tokyo Century Leasing,
United Overseas Bank, Pahouche and many others.
Competition Scenario – (Online
Channel):
Major
companies in used vehicle market in China are Guazi, Uxin Group, and Renrenche.
Guazi has comprised of the maximum share in the sale of used vehicle in China
from online channels during 2017. On the other hand, Uxin Group has comprised
of the second highest market share in sale of used vehicle during the same
year. Renrenche has been accounted for the third highest market share in the
sale of used vehicles during 2017. These three companies cover majority of the
total sales of used cars from online channels during 2017. Online used vehicle
companies compete on various parameters such as the number of cities covered,
providing value-added services, performing number of quality checks before
listing vehicles and portfolio of Vehicles. They provide various services such
as vehicle inspection, consultancy services, financing and insurance of
Vehicles, door to door Vehicle delivery services, transfer of Vehicle registration
and after sale services.
Guazi
provides its services in more than 200 cities of China whereas Uxin Group has
more than 200 offline stores to provide after sale services to its customers.
Renrenche has a presence in over 80 cities in China. There are various business
models prevailing in the online used vehicle market of China such as C2C, B2C,
C2B, B2B, and C2B2C.
Future Outlook and Projections:
By
Volume: It has been expected that there will be a reduction in average
replacement age of vehicles in china. This will lead to increase in average
ticket size of vehicles. Moreover, online penetration in the used vehicle
market is expected to maintain the growth trend till 2022 showcasing maximum
potential to grow. Online companies such as Guazi are focusing to expand its
portfolio of services by expanding into used vehicle finance. Renrenche has
planned to open multiple offline stores by 2018. In China, sale of used
vehicles through financing is expected to reach up over 13 million units by
2022,
Key Topics Covered in the Report
China
Used Vehicle Market Size (2012-2017)
China
Used Vehicle Market Overview
China
Used Vehicle Market Segmentation by type of vehicle sale (Sedans, SUVs, Micro
Vans, MPVs, Trucks, Buses, Cross Type Vehicles, Trailers, Motor Cycles and Low
Speed Trucks)
China
Used Vehicle Market Segmentation by Vehicle Age (Three to Six Years, Less Than
Three Years, Six to Ten Years and More Than Ten Years)
China
Used Vehicle Market Segmentation by Distribution channels (Organized Dealers/Large
Vehicle Market, Online, and Unorganized Dealers)
China
Used Vehicle Market Segmentation by Region Wise Distribution (East China, South
Central China, Northern China, South West China, North East China, North West
China)
China
Used Vehicle Market Segmentation by Price of Vehicle in CNY (Less than 30,000,
30,000-50,000, 50,000-80,000, 80,000-120,000, 120,000-150,000, 150,000-300,000
and More Than 300,000)
China
Used Vehicle Market Ecosystem and Value Chain Analysis
Snapshot
on China Online Used Vehicle Market.
Snapshot
on China Used Vehicle Finance Market.
Buying
decision parameters and trend and developments of China Used Vehicle Market
Complete
Competition Analysis including Heat Maps & Strength and Weakness of the top
five major online companies.
Competitive
Landscape of Major Players in China Online Used Vehicle Market and overview of
all Other Online Major Players in China
SWOT
Analysis of China Used Vehicle Market
Government
Regulations of China Used Vehicle Market
Future
Outlook and Projections of China Used Vehicle Market (2017E-2022E)
Analyst
Recommendation
Economy
Analysis including major Macro/Micro Economic factors affecting China Used
Vehicle Market (2012-2022E)
For more information about the report,
refer to below link:
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