Beijing, China – In a significant boost to the automotive sector, China’s used vehicle sales surged by 14.68 percent year-on-year in April 2024, according to industry data released by the China Automobile Dealers Association (CADA).
This notable increase reflects a strong consumer demand coupled with effective business promotions and supportive government policies.
Approximately 1.68 million used vehicles were traded across the country last month, generating a total transaction value of 111.1 billion yuan (approximately 15.64 billion U.S. dollars). This sharp rise in sales highlights a robust rebound in consumer confidence and a growing preference for used vehicles among Chinese buyers.
The CADA attributed this rapid expansion in sales to several factors. Firstly, there has been a marked growth in consumer demand for more affordable vehicle options amid economic uncertainties. Secondly, business promotion activities, including dealership sales events and marketing campaigns, have effectively drawn buyers into the market. Additionally, government policies supporting the trade-in of consumer goods have provided a further impetus to the used vehicle market. These policies are designed to encourage consumers to trade in their old vehicles for newer models, thus stimulating both new and used car sales.
In the first four months of 2024, about 6.28 million used vehicles changed hands in China, marking a 9.42 percent increase compared to the same period last year. This sustained growth indicates a positive trend in the market, reflecting both a healthy supply of used vehicles and a consistent demand from consumers.
Looking ahead, the CADA anticipates an even higher transaction volume in the used vehicle market for May. This optimistic forecast is based on the continued implementation of trade-in promotion policies, an uptick in local promotional activities, and the impact of upcoming auto shows. These events are expected to attract significant consumer interest and drive further sales growth.
The resurgence in the used vehicle market comes at a critical time for China’s broader automotive industry, which has been navigating through various economic challenges. The increase in used vehicle sales is not only a sign of recovery but also an indicator of shifting consumer preferences towards more cost-effective vehicle options.
As the market continues to evolve, industry stakeholders remain hopeful that the positive momentum will persist, bolstered by ongoing policy support and strategic marketing efforts. The growth in used vehicle sales is poised to play a pivotal role in the overall recovery and expansion of China’s automotive sector in the coming months.
