Used Vehicle Market Develops Faster in The Eastern China

Source:iResearch December 03,20181:13 PM

Currently, vehicle supply in China’s used vehicle market is still insufficient and its unevenly geographic distribution leads to the mismatching of demand and supply in many regions in China and a low vehicle circulation efficiency. With further implementation of migration limitation policy in China, vehicle supply will gradually be more balanced among different regions, and the vehicle supply in some vehicle-insufficient areas will be improved. The fast development of e-commerce platforms will also promote fast circulation of used vehicle throughout China. Specially, used vehicle auction helps vehicle dealers to rapidly access the vehicles sources all over China, and e-commerce platforms show a relatively strong guidance and promotion effect for nationwide used vehicle purchase among users. 

The five most influential factors for used vehicle industry are vehicle supply, vehicle demand, logistics, e-commerce platforms and related financial services. Taking all these five factors into consideration, the comprehensive circulation index for used vehicle in China turned out to be 36.5 in 2017, indicating a used vehicle market of under-development in China. Meanwhile, used vehicle market develops faster in the east than in the west of China. Eastern regions have a relatively more active used vehicle market than in other regions and have a used vehicle circulation index of 40.1%, while the market in western regions is less active with a used vehicle circulation index of only 30.1.

Used vehicle e-commerce platforms develop faster in provinces in the province with well-developed Internet industries, such as Zhejiang, Guangdong, Shandong and Jiangsu. In these regions, vehicle dealers and consumers are more receptive for the used vehicle e-commerce and have a higher used vehicle usage rate. Therefore, used vehicle e-commerce platforms are more mature in eastern regions, and are also good in northern and south-central China. Among all the western provinces, Sichuan has the most mature used vehicle e-commerce platforms compared with other provinces.
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