Weekly Used Car Market Report (July 1-7, 2024)

The weekly transaction trend of the used car market from July 1 to July 7, 2024, shows a daily average transaction volume of 61,600 vehicles, a decrease of 0.74% compared to the previous week but a 2% increase compared to the first week of June. This indicates that despite fluctuations, the overall trend still shows potential for growth.

Considering the market environment, July and August are traditionally off-season months with frequent high temperatures and extreme weather, which will affect offline customer flow and lead to higher inventory pressure for dealers. However, the enthusiasm for travel during the summer vacation in July has increased the demand for vehicle replacement among some families, which is beneficial for market recovery.

Survey data shows that most used car dealers report that the market situation in July is basically the same as in June, with transaction prices still at a low level, further increasing the pressure on dealers' operations. However, after a fierce price war in the new car market in the second quarter, the transaction prices of new cars began to stabilize in July. This positive change is expected to drive the activity of used car transactions and provide strong support for reversing the continuous decline in the used car market trend.

From the consumer perspective, the strong domestic demand is evident. Data from the National Bureau of Statistics shows that affected by the "May Day" holiday, the policy of replacing old consumer goods, and the "618" event, the total retail sales of consumer goods in May increased by 3.7% year-on-year, accelerating by 1.4 percentage points compared to April. The significant impact of the holiday economy has set new records for the number of tourists. According to the data from the Ministry of Culture and Tourism, during the Dragon Boat Festival in June, the number of domestic tourists reached 110 million, a year-on-year increase of 6.3%, showing a strong trend of domestic short-distance self-driving tours, creating favorable conditions for the gradual strengthening of the automotive market in the second half of the year.

According to the latest statistics from the Ministry of Public Security, as of the end of June 2024, the national vehicle ownership has reached 345 million, including 24.72 million new energy vehicles, and the number of car drivers has reached 496 million. This huge market and consumer group have laid a solid foundation for the development of the used car market.

China's used car market, in terms of scale, policy environment, market structure, and consumer demand, has not undergone fundamental changes. Although the market may be affected by some fluctuations and challenges in the short term, from a long-term perspective, with the continuous expansion of the automotive consumer market and the increasing recognition of used cars by consumers, the long-term development trend of the used car market still maintains a positive momentum.

Americ Energy (CHINA) Co., Ltd. is focused on the import and export business of automobiles and auto parts, serving as a comprehensive auto service platform that provides 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;
• Establishment of an overseas warehouse in Dubai and an after-sales center in Sharjah, offering consignment, after-sales, and extended warranty services;
• Provision of after-sales service, customs clearance service, pick-up service, storage service, logistics service, and vehicle consignment service in Bishkek, Moscow, St. Petersburg, and other places;
• Provision of high-quality used car resources;
• Provision of some new car special car resources.