Used Car Transaction Volume

1. Definition and Industry Position

Used car transaction volume refers to the statistical metric tracking the total number of transactions completed in the nationwide used car market over a specified period, serving as a core benchmark for measuring the vitality of the vehicle parc economy. Regularly published by the China Automobile Dealers Association (CADA), its movement directly reflects automotive circulation efficiency, the pace of trade-up consumption, and the overall health of the automotive aftermarket. In recent years, the ratio of used car transactions to new car sales has neared 1:1, signalling China's automotive market transition from being "new car-driven" to "parc-driven".

2. Year 2025: Surpassing the 20-Million-Unit Mark

In 2025, China's used car transaction volume surpassed the 20-million-unit milestone for the first time, with cumulative volume reaching 20,108,000 units (up 2.52% year-on-year) and a total transacted value of RM1,289,790,000,000. This marks a decade-long expansion from 10 million to 20 million units since first crossing the 10-million threshold in 2016.

The market charted a "slow start, strong finish with volatile recovery" trajectory across the year: transactions slid in the first half due to new car price volatility, before rebounding noticeably in the second half as new car pricing stabilised and consumer sentiment recovered.

3. 1H 2026: Steady Volume Growth, Reaching Parity with New Cars

From January to June 2026, nationwide used car transactions totalled 9,713,200 units, representing a 1.50% year-on-year increase, with cumulative transaction value reaching RM638,530,000,000. In the first half, used car sales volume ran neck and neck with new car sales over the same period, bringing both market segments to near parity. Based on transacted value, the average price of a used car in 1H was around RM65,700, accounting for only 38% of the average new car price (around RM173,000).

In terms of monthly performance, June recorded 1,618,400 transactions, rising 1.05% month-on-month but dipping 2.36% year-on-year. The year-on-year contraction was largely influenced by the high base effect from the same period last year alongside ongoing price-slashing across the new car market.

4. Used New Energy Vehicles (NEVs): High-Growth Trajectory

Used New Energy Vehicles (NEVs) stand out as the most vibrant segment in the market. In 2025, used NEV transactions reached 1,600,000 units, accounting for 7.9% of total annual volume—up 2.2 percentage points year-on-year.

From January to April 2026, cumulative used NEV transactions reached 547,900 units, charting a 29.1% year-on-year increase, with April's standalone market penetration hitting 8.57%. The three-year average residual value retention rate for NEVs was approximately 43%, which, while still below the 62% recorded for internal combustion engine (ICE) vehicles, saw leading pure electric brands bucking the trend with recovering resale values.