The rapid development of the automobile industry has also shown a rapid growth momentum in the used car market. With the increasing recognition of my country's leading position in new energy vehicle technology in the world and the implementation of the efficient and smooth used car market policy, the used car market has begun to undergo positive changes: the export of new energy used cars is strong, and cross-regional circulation is getting faster and faster With the rise of large-scale distribution companies, the brand influence of used cars has also emerged, and the market has thus entered an era of diversified competition.
Favorable policies trigger the used car market to pick up
The latest data released by the China Automobile Dealers Association shows that although the transaction volume of the national used car market in October has declined year-on-year, the overall decline has gradually narrowed, especially the effect of the recently intensive used car market policies. There are obvious signs of recovery in the market. The industry believes that driven by multiple factors such as policies and markets, the used car market will usher in a new round of reshuffle.
The overall market is showing a warming trend
For most offline used car dealers, the recent days are not easy: the price continues to fall, so that these dealers recycle the used cars at high prices or sell them at a reduced price, or continue to extend the inventory period, even as Toyota , Lexus and other brands that have always had a high value retention rate in the used car market have also begun to become less sought-after.
Analyzing the reasons, in addition to the impact of the epidemic, on the one hand, the market price of new cars has continued to decline, forming a market situation of "new cars are not expensive and old cars are not cheap", which has squeezed the price of used cars; The intensive introduction of policies in the car market has effectively broken through the congestion points in the circulation of the used car market. The increase in car sources has also reduced acquisition costs, increased consumers' choice of car purchases, and reduced the terminal price.
It is understood that since the beginning of this year, due to the overlapping effects of the epidemic and other factors, the downward pressure on my country's auto market has increased, and this situation has also been transmitted to the used car market, resulting in a year-on-year decline in the transaction volume of the used car market. However, under the support of favorable policies, the used car market has stabilized and rebounded in the second half of the year.
According to industry insiders, the state has issued a series of policies that benefit the used car industry, which has greatly promoted the free circulation of the used car market and the cross-regional operation of enterprises, opened up the traffic jams across the country, and increased consumers' car purchase choices. It is expected that by the end of the year The volume of used car transactions will increase.
It is worth noting that the online transaction volume of used cars is increasing significantly. Big data from Guazi Used Cars shows that in October, the volume of online used car transactions continued to grow. Among them, the transaction volume of loans to buy used cars increased by about 132% year-on-year, accounting for about 40% of the market.
The implementation of the new policy has greatly promoted the growth of online transactions of used cars. Wang Xiaoyu, co-founder of Guazi Used Cars, said that after the abolition of the national five-year migration restriction policy, the range of car sources that users can choose from on the Guazi platform has directly expanded by 6 to 10 times. At the same time, with the implementation of my country's national large circulation policy for used cars, the trading scope and matching efficiency of the used car industry will be greatly improved, and the used car market is expected to enter a period of rapid development.
Policies push the market towards regulation
Promoting the efficient and smooth flow of the used car market will play a key role in promoting the growth of consumption in the entire car market.
Based on this, in recent years, my country has intensively introduced a number of policies to promote the development of the used car industry, forming a set of policy combinations to promote the development of the industry. Among them, in 2021, measures such as "trans-provincial handling" of used car transaction registration and "digitalization" of file transfer will be introduced. In 2022, the temporary property rights system for the used car industry will be introduced, the annual inspection of cars will be relaxed, the national five-year restrictions on relocation will be cancelled, and restrictions will begin at the end of the year. The release of relevant favorable policies such as car dealers trading used cars in their own names has provided confidence and protection for the market.
Since the beginning of this year, the executive working conference of the State Council has conducted research and deployment on the development of the used car market four times. Various documents to promote automobile consumption have clearly stated that it is necessary to smooth the cycle of used cars and cancel unreasonable restrictions on used car transactions.
At the same time, local governments are also intensively introducing relevant policies and measures. Recently, Shandong, Tianjin and other places have successively introduced measures to promote the high-quality development of the regional used car circulation field, establish a used car integrity guarantee system, and accelerate the activation of the used car market.
Favorable policies are driving rapid changes in the circulation of used cars. According to the latest data released by the China Automobile Dealers Association, the conversion rate of used cars in September was 27.21%, an increase of 0.3 percentage points from August. Since the low point in April this year, the indicator has risen month by month, and the cross-regional circulation of the entire used car market has become more and more prosperous.
In recent years, the proportion of cars purchased through replacement in my country's auto market has been increasing, which means that the efficient circulation of the used car market will also promote the steady growth of the entire auto consumption market. With the implementation of the policy, the industry system for used cars is being gradually improved, and consumer rights have been further protected, which has laid the foundation for faster growth in the used car market.
Experts said that the used car industry has always had problems such as information opacity, inconsistent standards, single profit model, and vicious competition. The introduction of these new policies will further regulate the market, make the market more transparent, and consumers' rights and interests can also be better. Protect. More importantly, vigorously promoting the healthy and standardized development of the used car industry is of great significance to boosting the overall sales of new cars. It will help promote the formation of echelon consumption and circular consumption in the domestic auto market, and will also speed up the process of survival of the fittest in the used car industry.
A new round of reshuffle in the market is accelerating
The changes in the market and the improvement of policies have made it impossible for the used car market to rely on information price differences to obtain profits in the past. The industry has begun to accelerate into a reshuffle period. Only by relying on real strengths such as brand, technology, service, and guarantee can it survive and develop.
In the past, "small, scattered and weak" has always been a prominent problem restricting the development of the used car market. The data shows that the main structure of my country's used car management enterprises is mainly single distribution (that is, there is only one operating store in a certain area), accounting for 88%. More than half of the enterprises are mainly individual industrial and commercial households, and their business premises are mainly concentrated in trading. In the market, enterprises with independent showrooms account for only 20%; in terms of enterprise income scale, 82.6% of used car dealers have an annual operating income of less than 1 million yuan. Due to the limited funds and scale of operators, the overall operation of the used car market lacks standardization, and dealers are limited to the local market, making it difficult to form brand influence.
Luo Lei, deputy secretary-general of the China Automobile Dealers Association, said that the reshuffle of the used car industry is an inevitable trend. The improvement of the policy system will accelerate the transformation of used car dealers. Large-scale dealers will rise rapidly and drive the branding process of the industry. .
At the same time, networking has also become a new change in the business model of the used car market in the future. Many used car dealers have completed the transition from offline sales to online sales. The improvement of e-commerce transactions and the standardized development of used car e-commerce have also made it possible for used car dealers to enter the national market, thereby comprehensively promoting used car sales. Online transactions in the car market.
It is understood that many domestic used car trading platforms, including Guazi used cars, are speeding up their business layout, launching more than 300 test data for each car, returning the car without reason within 7 days, and life-long insurance for three types of vehicles: fire, water, and accidents. The refund service not only greatly facilitates consumers to buy and sell used cars, but also allows used car transactions to gradually shift from a single price competition to a stage of diversified competition in quality, service, and guarantee.
used new energy vehicles are gaining momentum overseas
As one of the first pilot cities for the export of used cars in China, the export of used new energy vehicles in Tianjin has maintained rapid growth since the beginning of this year. According to analysis by industry insiders, behind the impressive growth is the rise of the domestic new energy vehicle industry, which is increasingly recognized internationally; As China's used new energy vehicles go overseas, the optimization of supporting services may become a new core force.
The export of used new energy vehicles maintained rapid growth
Recently, at the 2nd China (Tianjin) Used Car Export Overseas Exhibition, used new energy vehicles became the main models participating in the exhibition. According to Zhang Tingting, secretary-general of the Tianjin Used Car Export Association, the number of exhibitors this time is about 100, three times that of last year. "90% of the exhibited vehicles are used new energy vehicles, including many popular new energy models."
"We have about 40 used cars participating in the exhibition, mainly new energy vehicles of our own brand." Shi Yunsheng, general manager of Tianjin Huatu Automobile Logistics Co., Ltd., an exhibitor, said that domestic new energy used cars are cost-effective, fast in technology iteration, and have a large number of stocks. The overseas market is very popular, and many overseas distributors offered olive branches to seek cooperation.
Since Tianjin Huatu Auto Logistics Co., Ltd. was approved as a pilot enterprise in September 2020, its business volume has grown rapidly. In 2021, it will complete the export of 252 used cars with a value of 4.27 million US dollars. In the first 10 months of this year, more than 1,100 vehicles have been exported, an increase of 4 times year-on-year; the value of goods exceeded 30 million US dollars, an increase of nearly 10 times year-on-year, and more than 95% of them were used new energy vehicles.
The reporter learned that the venue of the fair includes Dubai and the China-Egypt TEDA Suez Economic and Trade Cooperation Zone. Among them, Dubai is one of the main target markets for the export of used cars in my country, and after more than 10 years of development and construction, the China-Egypt TEDA Suez Economic and Trade Cooperation Zone has the conditions to undertake the used car export fair.
Zhang Tingting said, "Through the fair, the aim is to build the two places into Tianjin's used car export transit base and expand the radiation scope of used car exports."
Since Tianjin was approved to carry out the used car export business in 2019, Binhai New Area, as the place where Tianjin’s used car export pilot policy is undertaken, has a total of 10 used car export qualified enterprises. Standardized management of the industry, selection of pilot enterprises, dynamic adjustment of pilot projects, and innovation in export models etc., to become the country's first used commercial vehicle export region.
Industrial upgrading and superimposed policies are favorable to help launch overseas
According to industry insiders, behind the impressive growth of new energy used car exports, first, the rise of the domestic new energy car industry, and the increasing recognition of technology leadership in the world; second, the remarkable results of the domestic used car export pilot policy.
Shi Yunsheng said: "Initially the export of used new energy vehicles was mainly concentrated in the field of commercial vehicles, but as my country's new energy passenger vehicle technology continues to improve, it maintains a leading position in the international market, and the rapid growth of new car exports has driven brands to go global." He said that in the future, the value preservation rate and circulation price of new energy vehicles in overseas markets will have a certain room for adjustment, which will further benefit the export of used new energy vehicles.
In addition, policy promotion is also an important reason for the rapid growth of used car exports.
my country began to pilot the export of used cars in 2009. Currently, the pilot business of used car export covers 30 cities in 25 provinces (autonomous regions and municipalities directly under the Central Government). In May of this year, the "Opinions on Promoting the Stability and Quality Improvement of Foreign Trade" issued by the General Office of the State Council clearly mentioned that more regions should be supported to develop used car export business, expand the scale of used car export, and improve the quality of used car export.
From the country to the local level, governments at all levels continue to release positive signals for the export of used cars, and the scale of used car exports continues to expand.
According to the "Guidelines for China's Used Car Export by Country (2021)", as of June 2021, my country has exported a total of 10,889 used cars, with a cumulative export value of 68.847 million US dollars. Among them, 2,551 used new energy passenger vehicles were exported, with an export value of 23.27 million US dollars.
The optimization of supporting services may become the core focus
Along with going global, optimizing supporting services may become the key to enhancing the export competitiveness of my country's used new energy vehicles. Industry insiders said that on the one hand, it is necessary to continue to optimize the construction of overseas new energy charging facilities, maintenance service centers and other facilities;
Shi Yunsheng said: "The export of used cars is generally carried by ro-ro ships, but most of the shipping companies are foreign companies, and domestic companies have no right to speak, so it is difficult to book space."
For this reason, at the opening ceremony, the Tianjin-Dubai ro-ro direct route was officially launched, which can transport 2,500 to 2,800 used cars at a time. "The addition of this direct shipping route will further enhance the service capacity of used car transportation, strengthen the advantages of used car export business at Tianjin Port, and improve the export competitiveness of enterprises." Bai Xinyu, deputy director of the Management Committee of Dongjiang Comprehensive Free Trade Zone, said.
According to Liu Qingliang, director of the Free Trade Zone Work Bureau of Dongjiang Comprehensive Free Trade Zone, Dongjiang will further optimize corporate financing services, help companies build overseas after-sales service systems, build overseas warehouses and overseas exhibition bases, and serve used car exports through China-Europe trains. Strengthen exploration, give full play to the linkage advantages of the port area, and help Tianjin build a central city of automobile circulation.
