China Automobile Dealers Association: 6.50 Million Vehicles Traded Daily from July 21 to 27, Up 0.79% MoM

According to an announcement by the China Automobile Dealers Association, from July 21 to 27, the used car market maintained a healthy performance, with daily trading volume reaching 6.50 million vehicles, up 0.79% month-over-month (MoM). Although it decreased by 1.9% compared to June, the trading volume has shown a steady upward trend since the second week of July. This is attributed to the appearance of summer consumption patterns and the promotion of automotive replacement policies, which have stabilized the industry's replacement rate above 60%, allowing for a large influx of used cars into the market, providing sufficient inventory for future transactions.

**Note:** Trading volume is calculated over a 5-day period.

In recent days, the new car market's transaction prices have stabilized, driving up the used car market: it has triggered consumer enthusiasm for replacing old cars, increased market supply, and stabilized consumer expectations of used car prices, stimulating demand, which may help reverse the downward trend in prices.

Although the used car market is currently experiencing a traditional slack season, with trading volume and activity levels decreasing, dealers are facing inventory accumulation and cash flow difficulties. However, the market still exhibits seasonal consumption characteristics. In the future, as weather improves, travel demand increases, and holiday and promotional activities approach, there may be a small peak in consumer demand.

Regional Analysis of Used Car Sales

This week, the used car market as a whole showed a small upward trend, with demand rebounding. By region, the two major regions of East China and Southwest China drove growth in this week's market.

Specifically, East China saw a daily trading volume of 2.29 million vehicles, up 4.62% MoM. Major cities such as Nanjing, Nanchang, Linyi, Zaozhuang, Jinhua, and Shanghai all showed varying degrees of upward trends. Linyi and Zaozhuang markets saw growth of 7.6% and 6.4%, respectively; Nanjing, Nanchang, and Jinhua markets recorded growth rates between 3% and 5%; Shanghai market saw a MoM increase of 6.2%. However, Hangzhou, Xiamen, Hefei, Jinjiang, and Ji'nan markets experienced a small decline.

North China saw a daily trading volume of 0.25 million vehicles, down 3.56% MoM. This week, Beijing, Shijiazhuang, Langfang, Taiyuan, and Tianjin all saw a downward trend in used car market transactions. Beijing's market was down 6.1%, while Shijiazhuang and Langfang markets recorded decreases of 4.5% and 3.6%, respectively; Taiyuan market experienced a small drop-off, with a MoM decrease of 2.5%. Tianjin and Chifeng markets showed significant growth, with MoM increases exceeding 15%.

Northeast China saw a daily trading volume of 0.23 million vehicles, down 1.92% MoM. This week, Harbin, Jixi, Dalian, Shenyang, and Changchun all experienced downward trends in used car market transactions. Dalian and Jixi markets recorded significant declines, with MoM decreases exceeding 15%; Harbin, Shenyang, and Songyuan markets saw small declines, with MoM decreases ranging from 5% to 10%. Changchun market showed a stable performance, without any notable fluctuations.

Southwest China saw a daily trading volume of 1.30 million vehicles, up 2.59% MoM. This week, the Sichuan-Yunnan region as a whole showed a rebound in used car market transactions, with Chengdu and Chongqing markets recording increases of 5.2% and 3.4%, respectively; Mianyang market experienced a rapid upward trend, with an MoM increase exceeding 15%; Kunming and Guiyang markets saw small declines, especially Guiyang market, which recorded a significant decrease, with an MoM drop-off exceeding 10%. Lhasa market showed a stable performance, without any notable fluctuations.

Southern China saw a daily trading volume of 2.33 million vehicles, down 2.77% MoM. This week, major cities such as Guangzhou, Nanning, Haikou, and Jiaxing all experienced downward trends in used car market transactions. Jiaxing market recorded the largest decline, with an MoM decrease of 20%; Guangzhou market saw a decline of 16.1%, while Nanning and Haikou markets recorded decreases exceeding 10%. Changsha and Pingdingshan markets showed notable growth, with MoM increases exceeding 20%. Additionally, Wuhan and Dongguan markets experienced small gains.

Northwest China saw a daily trading volume of 0.10 million vehicles, unchanged from last week. This week, major cities such as Lanzhou, Xining, Baotou, and Yulin all experienced downward trends in used car market transactions. Baotou market recorded the largest decline, with an MoM decrease exceeding 20%; Xining market saw a decline of 7.9%, while Yulin market recorded growth of 25%. Xi'an and Wuhan markets showed small upward trends.