Weekly Report on Second-Hand Car Market (June 10th - June 16th, 2024)

The second-hand car market has been significantly sluggish recently due to the continuous impact of extreme weather, with market performance not meeting expectations. From June 10th to June 16th, 2024, the average daily transaction volume of second-hand cars was only 5.91 million units, which is a decrease of 2.13% compared to the previous week and a 2% drop compared to the same period in May. This indicates that the second-hand car market is experiencing a significant down cycle.

Entering June, the traditional off-season for car consumption has quietly arrived, and the market's purchasing demand is obviously insufficient during this period. According to comparable calculations, from June 1st to June 16th, a total of 720,000 second-hand cars were traded, a decrease of 9% compared to the same period in May. Survey results show that 55% of second-hand car dealerships reported a significant decline in customer traffic this week, and 90% of businesses believe that this week's transaction volume is average or has declined. More worryingly, 25% of businesses clearly stated that this week's transaction volume is significantly lower than that of May, an increase of 10 percentage points compared to last week.

Faced with such a severe market situation, most second-hand car dealers have to adopt more active business strategies to cope. They have begun to accelerate the speed of vehicle acquisition and sale, striving to reduce inventory backlog through the method of quick turnover. At the same time, in order to speed up the recovery of funds, they are also increasing the intensity of inventory clearance, hoping to reduce business risks before the market warms up.

From the consumption trend, according to data released by the National Bureau of Statistics, in May, the total retail sales of social consumer goods achieved a year-on-year increase of 3.7%, reaching 3,921.1 billion yuan. Among them, car consumption was 387.5 billion yuan, a year-on-year decrease of 4.4%, while non-car consumer goods achieved a growth of 4.7%. In the cumulative data from January to May, the total retail sales amounted to 19,523.7 billion yuan, a year-on-year increase of 4.1%. Specifically for car consumption, although the overall growth was only 0.2%, non-car consumer goods still maintained a robust growth of 4.4%. In 2024, the demand for car production is growing steadily, social consumption expectations are improving, and the automotive industry is gradually getting better.

In summary, the second-hand car market has been hit hard by the continuous impact of extreme weather and the traditional off-season of consumption, with a sluggish market performance. However, in the face of this predicament, dealers are not sitting idly by but actively adjusting their business strategies to cope with market changes. Although the market may remain sluggish in the short term, with the improvement of weather conditions and the gradual release of consumer demand, the second-hand car market will usher in new development opportunities.

Americ Energy (CHINA) Co., Ltd. is a comprehensive auto service platform focusing on the import and export business of automobiles and auto parts. We provide services around the whole auto industry chain, covering overseas trade, auto finance, car leasing, overseas import and export business, logistics and transportation business. We are building a comprehensive service provider integrating customers, capital, and vehicles at home and abroad with a new model.

Our advantages include:

• Provision of overseas capital allocation;
• Overseas warehouse in Dubai and after-sales center in Sharjah, offering consignment, after-sales, and extended warranty services;
• After-sales service, customs clearance, pick-up, storage, logistics, and vehicle consignment services in Bishkek, Moscow, St. Petersburg, and other places;
• Provision of high-quality used car resources;
• Provision of some new car special car resources.

Contact Information:
Website: www.auto-ae.com
Email: ae@americenergy.com
Phone: 13521210668
whatsapp: 13521210668
Address: No.298 Fengwei Road, Xishan Development Zone, Wuxi City, Jiangsu Province, China