China Automobile Dealers Association: China Automobile Retention Value Report for December 2021

Policy direction: Energy-saving and emission-reduction technologies are encouraged

In December , the Ministry of Industry and Information Technology issued a fine-tuning of the " double credit " calculation method. For traditional fuel vehicles that achieve low fuel consumption through advanced technical means, the policy direction is mainly " stable " , and certain credit exemptions are given for the two technologies that effectively reduce fuel consumption, namely the brake energy recovery system and high-efficiency air conditioning. While practicing carbon peak and carbon neutrality, the adoption of advanced technologies has always been encouraged. Similar exemption measures have been adopted in the 2020 annual credit calculation.

Hot Events: New Measures to Benefit the People and Enterprises

The "Regulations on Motor Vehicle Registration", "Regulations on the Application and Use of Motor Vehicle Driving Licenses", and "Measures for the Management of Road Traffic Safety Violation Points" formulated and revised this time are important achievements of the public security traffic management department in actively adapting to the new situation of economic and social development and "doing practical things for the people". The registration of second-hand car transactions in different places has been promoted in some areas since September 2021. The revision of the " Regulations on Motor Vehicle Registration" implements the previous reform measures at the regulatory level and promotes institutionalization and legalization.

Vehicle supply volume rebounds weakly

With the resumption of new car replacement in December, the supply of used cars also rebounded. The month-on-month growth in December is in line with the long-term seasonal trend, but compared with last year, there is still a significant gap in the supply of cars in December 2021. The rebound is insufficient and the operating risk of car dealers is still high. Chain and branded used car dealers are more able to withstand the risks of market changes, which has become a trend in the development of the used car industry.

SUV value retention rate improves

For a long time, the share of sedans in the second-hand car transaction volume has been much higher than that of SUVs , but in terms of value retention rate, SUVs have more advantages, and the monthly data has also increased month-on-month, especially for medium and large SUVs . Among sedans, although further segmentation shows that the value retention rate of medium and large sedans is also relatively high, there are more luxury brands among them, and the brand premium component in the second-hand car price is relatively large. Mainstream domestic brands and joint venture brands rarely involve this segment. In addition, while the sales volume of small cars has shrunk, the value retention rate has increased. This phenomenon requires car dealers to make a trade-off between " quantity " and " price " in their operations .

Luxury brand value retention rate hits a new high

The value retention rate of Porsche cars with a three-year age has exceeded 100. The prices of popular models such as Cayenne, Panamera, and Macan are generally high. For C -end consumers, it is not cost - effective to buy a car this month. BMW is the most active traditional manufacturer in the transformation to electrification. Although its products are updated quickly, it still adopts the old method of " price reduction promotion " at the end of the year in the sales process , and the value retention rate has declined in the short term. In addition, the BMW iX3 has recently been recalled.

The value retention rate of joint venture brands has increased

The value retention rate of mainstream joint venture brands increased month-on-month, and the differences between brands were not obvious. The price increase of used cars has become a common phenomenon. The high prices of some models of Japanese brands have also become a problem hindering the transaction of used cars. Deliberate price control is not beneficial to the overall healthy development of the market, and objectively creates a chaotic situation where both supply and demand are not transparent.

JEEP brand has seen a significant increase

The prices of used cars of joint venture brands are still mainly stable . Among them, the JEEP brand continues to release new cars, and consumers' confidence in the brand's future has increased. Used car brands have higher value. The value retention rate of the Citroen brand has changed slightly, which is related to the media attention of the C5X model.

The value retention rate of domestic brands generally increased

The increase in Trumpchi's value retention rate mainly comes from the increase in Trumpchi M8 , GS8 and other car series. The continuous release of new models of GS8 and M8 has promoted the brand promotion. Roewe's value retention rate has been rising for many consecutive months. From the renewal of the lion logo to the individual presentation of family models under the new national trend appearance, continuous brand innovation and precise positioning of national trend products will bring continuous attention and also have an effect on improving the value retention rate. SAIC officially certified used cars carried out user activities in eight cities at the end of the year. The price of certified cars provided a reference basis for car dealers and played a positive guiding role. Among independent brands, there are still few brands that carry out certified used cars.

New energy vehicle insurance officially launched

Insurance products should be regarded as important supporting facilities in automobile consumption. There were no perfect insurance products for new energy vehicles before. The launch of the new insurance products this time indicates that the " supporting facilities " for new energy vehicle consumption are more complete. Insurance is an important part of the cost of using a car. When buying a car for the first time, the insurance cost has been tied to the price of the new car, becoming an important factor affecting consumers' car purchase decisions. After New Year's Day in 2022 , the price of new energy vehicles will begin a new round of reconstruction, which includes the impact of subsidy decline, the impact of insurance costs, and may also include the impact of battery leasing. At present, some manufacturers have launched a series of " price insurance " measures.

The value retention rate of new energy vehicles continues to increase

By the end of 2021 , the range of new pure electric vehicles will be able to reach 1,000 kilometers. The general range of used cars has also reached the passing level of 300 kilometers, which can meet basic commuting needs. The range directly affects the price of used cars. Plug-in hybrid models are mainly domestic brands in the second-hand market. Among the three-year-old cars, BYD and Roewe brands account for more than half of the total. These two brands have a great impact on the value retention rate of the market segment.

The value retention rates of major models vary

The overall performance of new energy vehicles this month was uneven. In terms of the performance of key models, Hongguang MINI EV ranked first for two consecutive months, and it is well deserved to be the king of cost performance. The value retention rate of R Auto ER6 increased slightly to 73.4% .