CHINA’S secondhand vehicle market posted stronger sales growth in the first seven months of this year as demand soared, the China Automobile Dealers Association said yesterday.

More than 2.3 million secondhand vehicles were sold during the January-July period, an increase of 14.9 percent from a year earlier, the association said.

The growth outstripped a 2.3 percent increase in new car sales, which totaled 10.5 million units during the period.
Total revenue from secondhand vehicle transactions grew 12 percent to 10.6 billion yuan (US$1.66 billion) for the first seven months, according to the association.

In July alone, used car transactions amounted to 352,400 units, generating revenue of 218 million yuan.
“Demand for secondhand cars remained solid this year, compared with slowing new car sales,” said Shen Rong, vice secretary-general of the association.

Although the secondhand vehicle market is still small relative to the new car market, “its development may just be starting to pick up,” Shen said.

According to the association, out-of-town demand for used vehicles was particular strong after cities such as Beijing adopted a number-plate-based quota scheme to limit vehicle numbers, curbing local demand.

Shen said: “Such a trend will trigger more mergers and acquisitions among secondhand car brokers, forming big companies with larger economics of scale.”

Sedans account for 53 percent of total secondhand sales, buses and trucks made up 16 percent and sport-utility vehicles 2 percent. – Shanghai Daily

Source:cnbusinessnews