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Used car market widening footprint across nation

By Li Jiaying | China Daily | Updated: 2026-01-19 08:55
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Driven by the sustained implementation of trade-in policies, pilot reforms in automobile circulation, and efforts to expand used car transactions, China's used car market is gradually shifting from a fragmented, regional play into one that is heading toward nationwide circulation.

The numbers tell a clear story.

Data from the China Automobile Dealers Association show that used car transactions in the nation surpassed the 20-million-unit threshold for the first time in 2025, reaching 20.108 million units. Transaction volume rose 2.52 percent year-on-year, while total transaction value amounted to 1.29 trillion yuan ($185 billion) last year.

Further, used cars are increasingly becoming the first vehicle of choice for younger buyers, according to a used car consumption insight report released by automotive information platform Dongchedi in December.

Cost-effectiveness ranks as the top consideration for this buyer group, with most purchases concentrated in the 50,000-100,000 yuan price range, the report showed.

With nearly 37 million new energy vehicles on China's roads, growth in the used NEV segment has been particularly striking. From January to November, a total of 1.44 million used NEVs were traded nationwide, up 43.3 percent year-on-year, according to CADA.

However, compared with traditional fuel-powered used cars, transactions involving used NEVs still face persistent challenges.

Issues such as unified pricing, information asymmetry, difficulties in assessing battery conditions, limited after-sales protection, and high transaction costs across the entire process have yet to be fully resolved.

One example frequently mentioned by industry participants is battery valuation.

Unlike traditional used car appraisal models, the core value of NEVs lies in the "three electric" systems — battery, motor and electronic control. However, the absence of a unified and authoritative battery health testing standard, combined with automakers' restricted access to back-end data, makes it difficult for third-party inspectors to obtain accurate records of charging, discharging and battery degradation.

During my reporting, I also learned that inconsistent standards can lead to sharply divergent inspection results for the same vehicle across different testing agencies, undermining trust in used NEV transactions.

Peng Yanjun, a senior executive at Dongchedi, said that the lack of transparency in vehicle conditions has long been a core pain point in used car transactions. Therefore, establishing a unified, standardized and traceable intelligent inspection system, she noted, would fundamentally improve transaction efficiency.

A consumer I spoke to also expressed hope that a "national unified used car information inquiry platform" could be established. Such a platform, open to consumers and certified dealers, would provide access to maintenance records, accident history, insurance claims and battery operation data, with automakers required to upload data and dealers obligated to disclose it during sales. With authoritative information sources in place, both buyers and sellers would be more likely to reach consensus, avoiding disputes driven by conflicting claims, he said.

Luo Lei, vice-president of CADA, pointed out that current appraisal standards need revision, as traditional frameworks do not cover the valuation of core NEV features such as intelligent driving. Battery testing methods, he added, also need updating and improvement.

Besides expecting the rollout of unified national standards, I cannot help but wonder whether online platforms and emerging technologies such as artificial intelligence could offer new solutions.

AI models are already being used to match supply and demand more precisely and provide efficient, professional car selection services. Could similar technologies be applied to battery assessment and used NEV matching? With the rapid iteration of large models and the continuous upgrading of online platforms, I believe such applications may soon benefit both dealers and consumers.

Given the close interaction between the used and new car markets, improving the efficiency of used car circulation is likely to play a growing role in supporting new car sales. In this regard, further progress in used NEV transactions will hinge on coordinated efforts to tackle these long-standing but also new challenges, allowing consumers to buy with greater transparency and assurance.

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