China Automobile Dealers Association: China's used car manager index is 43.6% in June 2023

On June 30, 2023 , the China Automobile Dealers Association released the latest "China Used Car Manager Index" (UCMI). The results of this UCMI show that the used car manager index in June was 43.6%, which is below the boom-bust line, and the used car market is still in a depressed range.

The survey shows that the total market demand decreased in June, with 49.9% of used car managers believing that it “decreased”, 5.9% that it “increased”, and 44.2% that it “remained the same”.

Used car market demand in June

The survey shows that in June, online customer traffic remained basically the same, while offline customer traffic decreased. Among them, 90.2% of used car managers believed that online customer traffic remained “same”, while 62.5% believed that offline customer traffic decreased.

Second-hand car customer traffic in June

The survey shows that the used car transaction volume decreased in June. 46.9% of used car managers believed that the transaction volume "decreased", 4.4% believed that it "increased", and 48.7% believed that it "remained the same".

Used car sales in June

The survey shows that both inventory and inventory turnover time increased in June. Among them, 17.2% of used car managers believe that inventory has “increased”, and 9.1% believe that inventory turnover time has “increased”.

Used car inventory status in June

The survey shows that used car managers believe that the business conditions in June 2023 were not good, and the proportion of used car managers who believe that the business conditions were "bad" was 14.1%.

Second-hand car business status in June

In general, as the used car market entered the off-season, hot and rainy weather restricted people's travel, causing a decline in demand and sales in the used car market. The overall operating conditions of the used car market in June were not good.

Among the used car dealers surveyed, 40% said that the cash flow situation in June fell by 10%, while 60% of managers expected the cash flow situation in July to be the same as in June.

When talking about the expectations for next month, used car managers believe that the first thing to do now is to clear out inventory, collect some funds, and smoothly get through the off-season.

Used car managers are cautious about their forecasts for the used car market in July 2023, with an expected index of 40.5%, which is below the boom-bust line, and the used car market is becoming less prosperous.