Used car market in China set to expand

Used car market in China set to expand

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The China Automobile Dealers Association on November 11, 2013 said that the second-hand automobile market in the country will reach yearly sales of over 36 million by 2023. The predicted number will mark a six-fold increase from 2013.

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The vice-president of the association, Shen Rong said that new and used unit sales will be equal by 2023, which clearly indicates a matured automobile market. Shen said, “There is great potential to be tapped in the second-hand market, which may exceed the sales of brand-new units to become the driving force for the industry”.

The association also stated that the second-hand cars’ sales have increased 12-fold and the numbers range from 251,700 to 33.4 million between 2000 and 2009. In 2013, sales are expected to reach up to five million, but it is still at the primary stage when compared to the Western market.

Shen went on to say that the upturn is supported by favorable policies. Shen also said that the reason behind the increase in sales of used cars is the amendment of regulation on vehicle purchase tax, which was introduced in 2011. The chief of marketing at the Ministry of Commerce, Chen Hong said that the ministry is expected to present national standards for appraisal technology for second-hand cars in 2013.

Photo Credits: WantChinaTimes