China Automobile Dealers Association: China Automobile Retention Value Report in June 2023

Recently, the China Automobile Dealers Association and Jingzhengu jointly released the "China Automobile Retention Value Report in June 2023". The retention rate research aims to reflect the brand's comprehensive strength in terms of product strength, recognition, reputation, etc., and provide important data references for future repurchase, replacement, leasing, finance, new car pricing reference and other related businesses, thereby reducing business risks and improving operating efficiency.

The value retention rate data can be used to focus on the relationship between the past market environment, industry trends, corporate development and value retention rate. At the same time, it can also reflect the brand's comprehensive strength, such as product strength, recognition, and reputation, at a micro level. The value retention rate price data of this list is calculated using the sales price of used cars in good condition (B2C).

Policy direction: New energy vehicle purchase tax exemption

The continuation of the purchase tax exemption policy can be said to be what the industry has been looking forward to. In addition, there are many highlights in the content of this announcement. The exemption amount by the end of 2027 is clarified, which will guide the product design of manufacturers and help form long-term plans. The tax exemption amount for each vehicle shall not exceed 30,000 yuan (2024-2025), which indirectly affects the terminal transaction price of new vehicles. Explanation of the taxable price of the battery swap model is another highlight of this document.

Hot Events: Car Consumption Promotion Activities

The promotion activities led by the Ministry of Commerce have a wide impact and a long duration. They are expected to boost automobile consumption in the second half of the year and achieve the goal of steady growth. Although some regions have already launched promotions in the first half of the year, the lack of organization often leads to a scattered and independent struggle. Under the unified pace of "100 cities linkage" and "1,000 counties and 10,000 towns", it is expected to further activate replacement consumption and provide space for second-hand car transactions.

Changes in online vehicle supply: A slight increase in vehicle supply

Outdoor leisure has become a new demand in the post-epidemic period, and the recovery of residents' travel needs has also driven the auto market into the peak season. The hidden concern is how used cars can be integrated into various consumption scenarios. The currently recognized replacement scenario only solves the supply of used cars, and the stimulus measures on the demand side are still unclear.

Value retention rate of each level: the value retention rate of sedans generally rebounded

The value retention rate of sedans has generally increased, reflecting changes in consumer preferences. Users are more inclined to low-priced models that meet basic needs, including small SUVs. The value retention rate of mid-sized SUVs has increased, mainly driven by some hard-core off-road models, which is related to the peak season for self-driving tours.

Luxury brand value retention rate: Luxury brand prices are stable

Luxury brands have gradually found ways to stabilize their pricing system, such as stopping the sale of low-end models. For brands ranked lower, there is no room for further price cuts. Relatively speaking, second-tier luxury brands are more likely to withdraw rather than choose to cut prices. Among them, manufacturers that have achieved localization and adopted a multi-brand strategy will be more flexible in the transformation process.

Mainstream overseas brands’ value retention rate: Joint venture brands have bottomed out

The reason why the value retention rate of joint venture brands has come out of the trough is mainly due to their active price adjustment. At present, the recommended prices of mainstream models of joint venture brands are already low. Buick and Toyota's high-end MPVs and JEEP's mid-size SUVs are the recent market hotspots. Second-hand car dealers also need to pay attention to terminal demand, select and purchase cars, and improve turnover speed.

Top 15 domestic brands with the highest value retention rate: Changes in domestic brands

The top domestic brands are generally good at SUVs, and the demand for self-driving tours is strong, which indirectly affects the price increase of SUVs. The value retention rate of new power brands represented by Weilai and Ideal has declined, and the advantages of their products in terms of intelligence are no longer obvious. The value retention rate of the Haval brand has declined. On the one hand, the resistance comes from sales pressure, and on the other hand, it is also related to Great Wall's multi-brand strategy.

Popular value retention rate ranking list: 250,000 to 300,000 joint venture mid-sized car value retention rate ranking

After the Cadillac CT5 was launched on the market, it has received continuous praise for its appearance and performance. From a luxury perspective, the exterior design is very sporty and grand. Compared with its competitors, it has a stronger sense of freshness, and the materials used in the interior are also completely at the benchmark level for luxury cars, taking the first place among joint venture mid-size cars priced between 250,000 and 300,000 yuan.

Popular value retention rate ranking list: ranking of value retention rate of joint venture small cars

Among small cars, Honda's Fit and Yaris L ranked first and second respectively, and Fit has an unshakable position in small cars. The Polo Plus has a more lively image after the replacement. The overall design continues Volkswagen's more angular design concept. The shape is more mature than the old model, and the value retention rate ranks third.

Popular value retention rate ranking list: 100,000 to 150,000 domestic hot-selling compact SUV value retention rate ranking

Among the best-selling domestic compact SUVs priced between RMB 100,000 and RMB 150,000, Haval Big Dog ranked first with its novel design and rich configuration, and Ivy CS75PLUS ranked second. Roewe RX5 has developed to the third generation, with more fashionable interior and exterior design and driving experience, and its value retention rate ranked third.

Changes in the new energy vehicle market: further construction of charging infrastructure

Charging infrastructure currently has problems such as incomplete layout, unreasonable structure, and unbalanced services. The State Council recently issued the "Guiding Opinions" and put forward long-term goals to fundamentally improve the use environment of electric vehicles by 2030. It is worth noting that this document also mentions charging infrastructure in rural areas and intercity highways, which will make up for the current shortcomings.

Value retention rate of different types of new energy vehicles: electric vehicles have seen significant price reductions

From May to June, the price of new electric cars dropped, and there was also a phenomenon of clearing out old models. The price reduction of new cars continued to hit the value retention rate of used cars. In addition, under the general trend of new energy vehicles going to the countryside, the positioning of new products will also tend to be more affordable in the future, so the value retention rate of used cars will continue to be under pressure.

Value retention rate of major pure electric models

In the list of major pure electric vehicles in June 2023, the top three pure electric models are Porsche Taycan, Clever CLEVER, and Dolphin; multiple BYD models are included in the list.

Value retention rate of major plug-in hybrid models

In this month's plug-in hybrid list, BYD's multiple plug-in hybrid models are among the top 15. Non-domestic models are mainly concentrated in imported models. The current plug-in hybrid model list still shows a "dumbbell-shaped" model distribution.