China Used Vehicle Market Sales is Expected to Reach Around 34 Million Units by 2022: Ken Research
GURUGRAM, India, May 30, 2018 /PRNewswire/ --
China used vehicle market by type of vehicle (Sedans, SUVs, Micro Vans, MPVs, Trucks, Buses, Cross Type Vehicles, Trailers, Motor Cycles and Low Speed Trucks) by Vehicle Age (Three to Six Years, Less Than Three Years, Six to Ten Years and More Than Ten Years) by Distribution Channels (Organized Dealers/Large Vehicle Markets, Online, Unorganized Dealers) by Region (East China, South Central China, Northern China, South West China, North East China, North West China) 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), Competitive landscape of major players (Guazi, Uxin Group, Renrenche, Souche, Mychebao, Carking, China Grand Automotive Services Co. Ltd., China Yongda Automobiles Services Holding Ltd., Beijing Old Car Market, Da Shi Xing Automobile)
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April 2018 | China News
- Car ownership rate in China has been on the rise over the past few years and it is anticipated it will increase further over the coming years.
- Used vehicle finance has been projected to amplify at a significant pace over the forecasted period, acting as major catalyst for growth in China used vehicle market. Major companies such as Guazi will be expanding into used vehicle finance services leading to growth in the market.
- Sale of used vehicle is expected to increase majorly through the online distribution channel as companies within this segment are providing various value added services such as after sale service, vehicle inspection, adequate number of quality checks before listing vehicle on their website to ensure better quality of product which is sold, vehicle finance, insurance and consultancy services. Along with value added services, they charge very low commission on total transaction cost and offer various branded vehicles under one single website.
Growth in China used vehicle market will mainly be facilitated by growing penetration of online channels in the industry. Sales of existing players such as Guazi, Renrenche, Uxin and others are expected to amplify in the coming years. Moreover, new players are also projected to enter the online space, leading to growth in the overall industry. Furthermore, additional value added services offered by online players and number of quality checks conducted by them, will enhance the trust of Chinese people on the online segment. Online companies are majorly dependent on funding through large investors such as Baidu, Tencent and many others and it is expected that the funding will increase in future since online used vehicle market has the highest potential to grow.
Penetration of vehicle finance in the space is also likely to incline at a rapid pace as major online companies are focusing towards expanding their services into used vehicle financing. It is expected that the sales of new passenger vehicle will reach 39.1 million units in 2022, which would lead to further growth as replacement age of used vehicles is falling in the country. China's Logistic market is escalating at a considerable pace, creating further opportunities for the players.
Shift in choice has been observed among people of China in terms of buying used vehicles, as they are opting for more number of SUVs. Sale of used SUVs is expected to increase significantly over the coming years. SUVs are reliable and the average replacement age is more compared to other segments. Furthermore, it has become sort of a style quotient amongst the people of China leading to higher demand.
East China will dominate the sale of used vehicle in future as well. This region covers major provinces in China such as Shanghai, Jiangsu, Zhejiang, Anhui, Fujian, Jiangxi and Shandong. It is also expected that people in China will shift their preference towards vehicles below the age of 3 years.
Ken Research in its latest study, "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" suggests that the demand for used vehicles in China would continue to grow at a CAGR of 22.8% owning to expansion in service portfolios of online used vehicle companies, augmenting number of dealerships/vehicle markets, surging sales of new vehicles and growing logistics industry.
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For more information on the research report, refer to below link:
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