New car inventory falls below warning line, used car hits 10 million mark

On December 1, data released by the Circulation Association showed that the dealer inventory warning index was 49.9% in November, a slight decrease of 1.6 percentage points from the previous month and below the warning line.

Since July this year, the index has been below the warning line for many consecutive months. Although there was a slight adjustment in October, the overall positive trend of the auto market continues.

Lang Xuehong, deputy secretary general of the Circulation Association, said that in November, although some consumers were waiting for the year-end promotional discounts, the expiration of the purchase tax and the launch of new models by some manufacturers stimulated the market demand in November to continue the growth trend in October. However, due to the increase in the number of car delivery tasks for dealers in the fourth quarter, some dealers began to reduce prices to increase sales, and dealer inventory pressure is still high.

In December, the automobile market entered the peak sales phase at the end of the year, and automobile sales are expected to continue to increase. However, in order to achieve the manufacturer's annual sales target, the pressure on dealers to deliver cars will also increase.

In terms of used cars, in October, the national used car market transaction volume was 885,100 vehicles, a decrease of 0.89% from the previous month and a monthly increase of 22.89% year-on-year. The transaction amount was 50.955 billion yuan, a decrease of 10.59% from the previous month. From January to October, the cumulative transaction volume of used cars was 8.277 million vehicles, a cumulative year-on-year increase of 9.57%.

Xie Yanming, deputy director of the Used Car Professional Committee of the Circulation Association, said that there are only 11 and 12 months left before the end of this year. Judging from the current situation, the transaction volume of the domestic used car market this year is expected to exceed 10 million vehicles.

In terms of regions, in October, East China accounted for the largest proportion of 31.39%, followed by Central and South China with 20.09%, North China with 18.63%, Southwest China with 15.23%, Northeast China with 8.06%, and Northwest China with 6.04%; East China and North China, the economically developed regions in the east, accounted for 50.52% of the total transaction volume.

In October, basic passenger cars were still the main type of vehicles in circulation, accounting for 60.07%, followed by buses 9.51%, trucks 8.66%, SUVs 7.35% and MPVs 6.85%. Compared with September 2016, the overall market share of used passenger cars increased, while used commercial vehicles performed poorly in October and their proportion decreased.

In terms of the age of used cars, the transaction volume is the largest among those aged 3-6 years, accounting for 49.08%; followed by those aged 6-10 years at 21.88%, those aged 3 years at 21.42%, and those aged over 10 years at 7.63%.

In October, second-hand cars priced between 30,000 and 50,000 yuan accounted for the largest market share, at 23.03%, while second-hand cars priced below 80,000 yuan accounted for 65.10%.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.