China Used Car Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The China used car market, valued at USD 232.61 Billion in 2024, has experienced significant growth. China has emerged as a key player in the global second-hand used car market, with the country’s used car sellers seeking new opportunities abroad. The market is projected to grow at a compound annual growth rate (CAGR) of 7.60% from 2025 to 2034, potentially reaching USD 483.89 Billion by 2034.

China Used Car Market Growth

Rising disposable income, especially of the expanding urban population, is a key driver for the growth of the China used car market. According to government estimates, this demographic group had a per capita disposable income of 51,821 yuan in 2023, reflecting a 5.1% increase in nominal terms and a 4.8% increase in real terms.

With increased purchasing power and higher standards of living, consumers are seeking affordable ways to own a vehicle, with used cars offering a practical solution. The urban middle class, now the largest segment of car buyers in China, is more inclined to purchase used vehicles due to their lower cost compared to new cars, making car ownership accessible to a larger portion of the population.

This growing financial flexibility allows consumers to explore the used car market for high-quality vehicles, many of which are only a few years old and come with modern features at a fraction of the price of new models. Additionally, with increased disposable income, consumers are becoming more discerning in their choices, opting for well-maintained, certified pre-owned cars. This trend further drives the demand of the China used car market.

Key Trends and Developments

Rising sales and exports of used cars, government incentives for used car trade-ins, and the growing EV adoption are driving China used car market value.

November 2024

China’s first port-based used car export service centre was opened at the Shanghai Haitong International Automotive Terminal. Established by the Shanghai Waigaoqiao Free Trade Zone Group, this centre provides a comprehensive range of services, including vehicle registration and comprehensive logistics, for used car export enterprises in Shanghai and nearby provinces.

March 2024

Guazi.com started delivering used cars directly to its customers at their homes. Besides, buyers could also avail a seven-day test drive before finalising the purchase. Previously, buyers could only be allowed to conduct video inspections of cars before collecting the cars from designated locations.

January 2022

Nio opened its first offline used car experience store in Hangzhou, marking the debut of an exclusively used car showroom in China by a car manufacturer. The store is located in the Haiwaihai Auto Mall in Hangzhou, Zhejiang Province in eastern China.

January 2021

Nio Inc., opened its pre-owned service, Nio Certified, for buyers of used Nio Cars, with an investment of 3 billion yuan. The company claimed that all used cars from NIO Certified had passed 286 tests and included traceable vehicle information.

Increasing Sales is Impacting the China Used Car Market Revenue

Used car sales are rapidly increasing in China, primarily driven by rising consumer demand for more affordable vehicles, increased vehicle ownership among the middle class, and the ease of government regulations on car ownership and trade. With the high cost of new cars, many Chinese consumers are turning to the used car market as a more cost-effective alternative. According to the China Automobile Dealers Association (CADA), a total of 789,800 used NEVs were sold nationwide, a year-on-year increase of 54%. This share is expected to grow further in the coming years, raising the overall revenue of the China used car market.

Government Subsidies are Creating new China Used Car Market Opportunities

As consumers utilise government subsidies to exchange their used cars for profitable returns, the availability of high-quality used cars is witnessing a sharp rise. This influx of newer pre-owned vehicles is boosting the stock in the sector attracting more buyers who seek reliable, affordable alternatives to new cars. The Chinese government announced policy details for the used car trade-in scheme in April 2024, offering subsidies of up to USD 1,380, effective by the end of 2025.

Increasing Exports is Propelling the China Used Car Market Growth

China has emerged as a key player in the global second-hand used car market, with the country’s used car sellers seeking new opportunities abroad, particularly in developing countries where affordable vehicles are in high demand. According to customs data, used car exports in China surged over 350% year-on-year to 69,000 cars in 2022 from about 15,000 units in 2021. This is significantly contributing to the growth of the China used car market, especially, by creating new revenue streams for domestic sellers.

Rising EV Adoption is Becoming a Key Trend of the China Used Car Market

The rising concern over environmental issues has led to greater adoption of used EV cars among Chinese consumers, supported by government incentives such as subsidies, tax benefits, and stringent regulatory policies. According to the International Energy Administration (IEA), the sales of EVs between 2022 and 2023 grew by 5%, a majority share of which was held by used EV cars, reflecting the growing consumer confidence in used electric vehicles as an affordable and sustainable alternative to new models.

China Used Car Market Trends

According to the Ministry of Industry and Information Technology, 21.48 million passenger vehicles were sold in China in 2021, with used cars making up the majority of these sales. Used cars are preferred for their affordability, improved quality, well-maintained condition, as well as certifications from reliable car brands based on thorough inspections and offered warranties. This trend in the China used car market is further supported by the growing number of digital platforms that make the process of buying and selling used cars more transparent and efficient. As a result, consumers are increasingly confident in purchasing used vehicles, knowing they can access detailed vehicle histories and have professional inspections before making a purchase.

China Used Car Industry Segmentation

The report titled “China Used Car Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Vehicle Type

• Sports Utility Vehicle (SUV)
• Sedans
• Hatchbacks
• Others

Market Breakup by Vendor Type

• Unorganized
• Organized

Market Breakup by Fuel Type

• Diesel
• Hybrid/Electric
• Gasoline
• Petrol
• Others

Market Breakup by Sales Channel

• Online
• Offline

Market Breakup by Region

• North China
• East China
• Southwestern China
• Southcentral China
• Northeast China
• Northwestern China

China Used Car Market Share

Increased crude oil production is raising the petrol-based demand for the China used car market

According to the China used car market analysis, the market is being driven by the rise in crude oil production, which is significantly boosting the petrol-based used car market in China, as petrol prices remain relatively affordable in the country. The International Energy Administration (IEA) reported that China produced 28,481,573 terajoules of crude oil in 2022, up from 28,373,000 terajoules the previous year. The consistent production indicated a secure and stable fuel supply that reduced the financial burden on car owners, especially those in lower and middle-income brackets. Furthermore, with the growing availability of second-hand petrol cars in the market, many of which are well-maintained and offer good fuel efficiency, consumers are increasingly attracted to the affordability and practicality of used petrol cars, which align with their budget-conscious purchasing decisions.

Furthermore, the demand for gasoline-powered used cars is also rising, supported by the increasing natural gas production in the country, averaging 21.7 billion cubic feet per day in 2023, an increase of 6% from the previous year. This helps maintain affordable prices of fuel, making gas-powered vehicles, including CNG-based used cars, more attractive to consumers, especially in regions with limited electric vehicle infrastructure.

Growing e-commerce sales are fuelling the online trade of used cars in China

Online sales channel is expected to grow at a CAGR of 10.3% during the forecast period of 2025 and 2034. According to the China used car market report, the market is being driven by the growth of e-commerce sector in China, which are enhancing the convenience, transparency, and accessibility of buying and selling used cars online. The International Energy Administration (IEA) states that China is the world’s largest e-commerce market, accounting for nearly 50% of global transactions, with projections indicating it will reach USD 3.56 trillion by 2024. With the increasing comfort and trust in online shopping, consumers are turning to digital platforms to purchase used cars, where they can browse a wide selection, compare prices, and access detailed vehicle histories from the comfort of their homes.

Besides, offline trade of used cars continues to hold a significant share in China, owing to its growing retail industry. According to the National Bureau of Statistics (NBS), the total retail sales of consumer goods, including second-hand used cars, increased by 7.2% in 2023. This growth is driven by the continued importance of traditional dealerships, where buyers can physically inspect vehicles, negotiate prices, and test drive cars before making a purchase.

China Used Car Market Regional Analysis

In Eastern China, Beijing's used car market is experiencing steady growth, driven by the city’s expanding urban population, which increased from 41,540 in 2022 to 43,760 in 2023, according to the National Bureau of Statistics. Government policies aimed at reducing traffic congestion have fostered a shift towards second-hand, fuel-efficient cars, further boosting sales in these categories. This combination of population growth, evolving transportation needs, and supportive regulations is helping to fuel the country’s growing car market.

Competitive Landscape

The China used car market key players are ensuring that quality-certified used cars are readily available, guaranteeing customers both affordability and quality when purchasing second-hand car models. Besides, they are also leveraging China’s popularity as a global export hub to send their efficient used cars to developing markets, raising their overall revenue.

Uxin Ltd.

Founded in 2011, Uxin Ltd. is China’s largest online used car trading platform, offering B2B, B2C and C2B services through its sister brands Uxin Auction and Uxin Used Car. The company’s inventory-owning model allows it to offer a comprehensive transaction solution to its customers, encompassing the entire value chain, ranging from used-car acquisition, inspection and reconditioning, warehousing, as well as pre-sales and after-sales services.

Guazi

Founded in 2015, Guazi Used Cars is a leader in China's second-hand car e-commerce trading and service segment. Driven by big data and artificial intelligence technology, the company provides users with e-commerce services such as second-hand car testing and pricing, transaction services, auto finance, logistics delivery, and after-sales support. It is also at the forefront of digitising the circulation of non-standard second-hand car assets in China, serving over 200 major cities nationwide.

CAR Inc.

CAR Inc. was founded in 1976. It has since been a reseller of reproduction parts for Chevrolet cars and trucks. The company manufactures sheet metal, interiors, and more for classic Chevy vehicles, with its primary production facility located in the United States. Its key featured products include complete hood assemblies, Delray seat cover sets, and complete trunk lid assemblies.

Souche

Founded in December 2012, Souche is a leading new automotive retail platform in China. The company operates through several relative businesses, including the automotive financial leasing platform Tageche, the B2B industrial chain service platform Chehang 168, the used car online trading platform, Cheyipai, the customised car sharing platform TIHD, and SaaS products for used cars dealers Dafengche and more.

Other key players in the China used car market report are Autohome Inc. and Renrenche, among others.