2024 Year-on-Year Used Car Market Analysis in June

June 2024 Overall Performance of the Second-hand Car Market

In June 2024, the national second-hand car market saw a transaction volume of 1.519 million vehicles, a month-on-month decrease of 4.14%, and a year-on-year decrease of 0.93%, with a transaction amount of 97.82 billion yuan. From January to June 2024, the cumulative transaction volume of second-hand cars reached 9.3829 million vehicles, a year-on-year increase of 7.01%, adding 614.3 thousand vehicles compared to the same period last year, with a cumulative transaction amount of 625.212 billion yuan.

📉 June has officially entered the traditional off-season for sales, with the transaction volume of second-hand cars only reaching 1.519 million, marking the first negative growth on a year-on-year basis, a decrease of 0.9% from the same period last year. At the same time, the second-hand car manager index in June also significantly fell to 41.2%, a year-on-year decrease of 2.4 percentage points, and a month-on-month decrease of 1.7 percentage points, highlighting that the second-hand car market is still in a slump. The reasons for the downturn in the market can mainly be attributed to the following points: the traditional off-season for sales due to seasonal factors, natural decline in car purchase demand; adverse weather conditions such as heavy rainfall in some areas, which affected consumers' travel and willingness to buy cars; changes in the macroeconomic environment, causing some potential car buyers to postpone car purchase decisions to cope with economic pressure.

From January to June 2024, the cumulative transaction of second-hand cars reached 9.383 million vehicles, a year-on-year increase of 7%. Although the growth rate has fallen compared to the previous period, the overall market still maintains a robust growth trend.

Characteristics of the Second-hand Car Market in the First Half of the Year

Low prices and changes in market structure: Affected by intensified market competition and changes in consumer demand, the average price of second-hand cars in June continued to hover at a low level, only 64,400 yuan. Since February of this year, the average price of second-hand cars has shown a downward trend. Although there is a slight increase compared to the same period last year, this is mainly due to changes in the market structure, rather than a substantial increase in vehicle prices. This price change characteristic indicates that the current second-hand car market is facing significant competitive pressure, and consumer demand is undergoing profound changes.

Active cross-regional circulation and enhanced market vitality: Active cross-regional circulation has become a highlight of the second-hand car market. In order to expand market coverage and effectively alleviate inventory pressure, the cross-regional circulation of the second-hand car market continues to show an active trend. In the first half of the year, the average outward migration rate was as high as 28.8%, an increase of 2.6% compared to the same period, which fully shows the strong circulation and high activity of the second-hand car market nationwide. Cross-regional circulation, as one of the driving forces to maintain the upward development of the second-hand car market, is continuously injecting new vitality and opportunities into the market.

From the perspective of market demand, the uncertainty of the economic external environment in June has significantly increased, and the internal effective demand is still weak, with some expectations of enterprises and residents not being strong enough. However, as the national "old for new" policy gradually shows results, various places have introduced and followed up with corresponding policy measures, bringing some positive factors to the market. At the same time, the new car market price war also shows a trend of cooling down in stages, which is conducive to improving the overall car market environment.

Facing the fierce competition of new car market prices and the dual challenges of industry transformation, the second-hand car industry must accelerate iteration and upgrade, turning challenges into opportunities for transformation. Enterprises need to accelerate the iteration of marketing methods, promote the transformation from brokerage to dealership formats, accelerate the process of digital and refined development, and increase the intensity of brand and professional management reforms. At the same time, the industry should focus on the development direction of new industries such as second-hand car exports, innovate profit models, and explore new market space. In this process, building a creditworthy and transparent industry environment has become a crucial task. The second-hand car industry can win the trust of consumers by improving its after-sales service guarantee system and service quality, thereby stimulating their enthusiasm for consumption and further expanding the breadth, depth, and activity of second-hand car transactions.

June 2024 Second-hand Car Model Structure Analysis

Passenger car situation: In June, basic passenger cars traded 872.1 thousand vehicles, a month-on-month decrease of 5.14%, a year-on-year decrease of 3.92%; SUVs traded 205.9 thousand vehicles, a month-on-month decrease of 1.91%, a year-on-year increase of 5.26%; MPVs traded 95.2 thousand vehicles, a month-on-month decrease of 3.18%, a year-on-year increase of 0.08%; Cross-type passenger cars traded 36 thousand vehicles, a month-on-month decrease of 6.03%, a year-on-year increase of 22.34%. Commercial vehicle situation: Buses traded 84.9 thousand vehicles, a month-on-month decrease of 3.76%, a year-on-year decrease of 4.62%; Trucks traded 125 thousand vehicles, a month-on-month decrease of 4.42%, a year-on-year decrease of 1.30%. From a year-on-year perspective, in the passenger car market in June, SUVs and cross-type passenger cars showed certain growth momentum, while basic passenger cars and MPVs faced the pressure of declining sales. The commercial vehicle market as a whole was weak, with both buses and trucks showing a downward trend in sales.

From January to June, the cumulative transaction of passenger cars reached 7.5279 million vehicles, a year-on-year increase of 6.91%. Among them: basic passenger cars traded 5.4602 million vehicles, a year-on-year increase of 4.66%; SUVs traded 1.255 million vehicles, a year-on-year increase of 12.1%; MPVs traded 592.1 thousand vehicles, a year-on-year increase of 10.81%; Cross-type passenger cars traded 220.7 thousand vehicles, a year-on-year increase of 29.50%. Commercial vehicles traded 1.2749 million vehicles, a year-on-year increase of 2.18%. Among them: trucks traded 745.1 thousand vehicles, a year-on-year increase of 3.02%; buses 529.8 thousand vehicles, a year-on-year increase of 1.02%. From January to June, both the passenger car and commercial vehicle markets achieved positive growth year-on-year, with the passenger car market performing particularly well, especially SUVs and cross-type passenger cars; the commercial vehicle market remained stable, with trucks contributing significantly.

June 2024 Second-hand Car Transaction Vehicle Usage Duration Analysis

In June, the transaction proportion of second-hand cars with a usage duration of 3-6 years was the highest, accounting for 44.24%. Month-on-month it decreased by 1.43%, and year-on-year it increased by 1.64%; the models with a usage duration of less than 3 years accounted for 25.75%, month-on-month it increased by 0.89%, and year-on-year it decreased by 1.64%; the models with a usage duration of 7-10 years accounted for 17.52%, month-on-month it decreased by 1.37%, and year-on-year it decreased by 4.46%; the models with a usage duration of more than 10 years accounted for 12.49%, month-on-month it increased by 1.91%, and year-on-year it increased by 4.46%. In June, the shares of less than 3 years and more than 10 years increased significantly compared to the previous month, while all other intervals decreased. Compared to the same period last year, the shares of 3-6 years and more than 10 years have increased overall.

June 2024 Analysis of the Six Major Regions

In June 2024, among the six