The second-hand car market continues to be depressed and the price system is chaotic

From May 1 to 12, the data of China Automobile Circulation Association showed that the daily average trading volume of second-hand cars was 63800, down 3.8% from the last week of April. Calculated on a comparable basis, the transaction volume of second-hand cars was 400000, down 20% from the same period in April.

A number of second-hand car dealers said that when the current market is in the slack season, loss trading has become the norm. They believe that the impact of the "price war" in the new car market is one of the main reasons for the downturn in the second-hand car market. In addition, the performance of new energy vehicles in the second-hand car market is also poor. A second-hand car dealer said that the difficulty in valuing new energy vehicles and the frequent price cuts of new energy vehicle enterprises led to the chaos of their price system.

The China Automobile Circulation Association said that the growth of consumer demand for cars during the May Day holiday did not meet expectations, and the passenger flow and turnover were basically the same as at weekdays. The bad weather has affected the decline of passenger flow in some areas, and the trading volume is lower than the normal level. It is expected that the passenger flow in most parts of the country will decrease after entering the summer in late May. The dealers should give priority to the inventory and withdraw funds to ensure the smooth passing of the slack season in June and July.

It is worth noting that in terms of policy, the activity of exchanging old cars for new cars is aimed at improving the circulation of second-hand cars. All regions actively carry out national car trade in promotions and guide orderly competition in the industry. The China Automobile Circulation Association calls on local traffic management departments to do practical things for the masses and enterprises to promote the circulation of second-hand cars.

Institutional analysis shows that compared with the international advanced developed country market, the proportion of second-hand car transactions in China is low. China's automobile market started late, while the consumption of second-hand cars started even later, and is now in the rapid rise stage. In particular, the development of new energy vehicles has provided low cost advantages for ordinary consumers to purchase and use vehicles. With the release of the national scrapping and updating policy in May, the used car business and scrapping and updating of China's auto dealer groups will flourish in the future.

Supplementary view: Although the current second-hand car market is facing many challenges, such as the difficulties in the valuation of new energy vehicles and the confusion of the price system, with the increase of policy support and the enhancement of consumers' awareness of environmental protection, China's second-hand car market still has great development potential in the future. At the same time, with the arrival of the digital era, new channels such as second-hand car e-commerce platforms will become an important force to promote the development of the industry.

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