China Used Car Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

China Used Car Market Growth

Rising disposable income, especially of the expanding urban population, is a key driver for the growth of the China used car market. According to government estimates, this demographic group had a per capita disposable income of 51,821 yuan in 2023, reflecting a 5.1% increase in nominal terms and a 4.8% increase in real terms.

With increased purchasing power and higher standards of living, consumers are seeking affordable ways to own a vehicle, with used cars offering a practical solution. The urban middle class, now the largest segment of car buyers in China, is more inclined to purchase used vehicles due to their lower cost compared to new cars, making car ownership accessible to a larger portion of the population.

This growing financial flexibility allows consumers to explore the used car market for high-quality vehicles, many of which are only a few years old and come with modern features at a fraction of the price of new models. Additionally, with increased disposable income, consumers are becoming more discerning in their choices, opting for well-maintained, certified pre-owned cars. This trend further drives the demand of the China used car market.

Key Trends and Developments

China Used Car Market Trends

According to the Ministry of Industry and Information Technology, 21.48 million passenger vehicles were sold in China in 2021, with used cars making up the majority of these sales. Used cars are preferred for their affordability, improved quality, well-maintained condition, as well as certifications from reliable car brands based on thorough inspections and offered warranties. This trend in the China used car market is further supported by the growing number of digital platforms that make the process of buying and selling used cars more transparent and efficient. As a result, consumers are increasingly confident in purchasing used vehicles, knowing they can access detailed vehicle histories and have professional inspections before making a purchase.

China Used Car Industry Segmentation

China Used Car Market Share

Increased crude oil production is raising the petrol-based demand for the China used car market

According to the China used car market analysis, the market is being driven by the rise in crude oil production, which is significantly boosting the petrol-based used car market in China, as petrol prices remain relatively affordable in the country. The International Energy Administration (IEA) reported that China produced 28,481,573 terajoules of crude oil in 2022, up from 28,373,000 terajoules the previous year. The consistent production indicated a secure and stable fuel supply that reduced the financial burden on car owners, especially those in lower and middle-income brackets. Furthermore, with the growing availability of second-hand petrol cars in the market, many of which are well-maintained and offer good fuel efficiency, consumers are increasingly attracted to the affordability and practicality of used petrol cars, which align with their budget-conscious purchasing decisions.

Furthermore, the demand for gasoline-powered used cars is also rising, supported by the increasing natural gas production in the country, averaging 21.7 billion cubic feet per day in 2023, an increase of 6% from the previous year. This helps maintain affordable prices of fuel, making gas-powered vehicles, including CNG-based used cars, more attractive to consumers, especially in regions with limited electric vehicle infrastructure.

Growing e-commerce sales are fuelling the online trade of used cars in China

Online sales channel is expected to grow at a CAGR of 10.3% during the forecast period of 2025 and 2034. According to the China used car market report, the market is being driven by the growth of e-commerce sector in China, which are enhancing the convenience, transparency, and accessibility of buying and selling used cars online. The International Energy Administration (IEA) states that China is the world’s largest e-commerce market, accounting for nearly 50% of global transactions, with projections indicating it will reach USD 3.56 trillion by 2024. With the increasing comfort and trust in online shopping, consumers are turning to digital platforms to purchase used cars, where they can browse a wide selection, compare prices, and access detailed vehicle histories from the comfort of their homes.

Besides, offline trade of used cars continues to hold a significant share in China, owing to its growing retail industry. According to the National Bureau of Statistics (NBS), the total retail sales of consumer goods, including second-hand used cars, increased by 7.2% in 2023. This growth is driven by the continued importance of traditional dealerships, where buyers can physically inspect vehicles, negotiate prices, and test drive cars before making a purchase.

China Used Car Market Regional Analysis

In Eastern China, Beijing's used car market is experiencing steady growth, driven by the city’s expanding urban population, which increased from 41,540 in 2022 to 43,760 in 2023, according to the National Bureau of Statistics. Government policies aimed at reducing traffic congestion have fostered a shift towards second-hand, fuel-efficient cars, further boosting sales in these categories. This combination of population growth, evolving transportation needs, and supportive regulations is helping to fuel the country’s growing car market.

Competitive Landscape

The China used car market key players are ensuring that quality-certified used cars are readily available, guaranteeing customers both affordability and quality when purchasing second-hand car models. Besides, they are also leveraging China’s popularity as a global export hub to send their efficient used cars to developing markets, raising their overall revenue.

Uxin Ltd.

Founded in 2011, Uxin Ltd. is China’s largest online used car trading platform, offering B2B, B2C and C2B services through its sister brands Uxin Auction and Uxin Used Car. The company’s inventory-owning model allows it to offer a comprehensive transaction solution to its customers, encompassing the entire value chain, ranging from used-car acquisition, inspection and reconditioning, warehousing, as well as pre-sales and after-sales services.

Guazi

Founded in 2015, Guazi Used Cars is a leader in China's second-hand car e-commerce trading and servi...

CAR Inc.

CAR Inc. was founded in 1976. It has since been a reseller of reproduction parts for Chevrolet cars ...

Souche

Founded in December 2012, Souche is a leading new automotive retail platform in China. The company o...

*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*

Other key players in the China used car market report are Autohome Inc. and Renrenche, among others.