Data released by the China Automobile Dealers Association (CADA) in January 2024 showed that in 2023, total used car transactions nationwide reached 18.4133 million units, an increase of 14.88% year-on-year, with a total transaction value of RMB 1.179532 trillion — exceeding RMB 1 trillion for the first time. Meanwhile, new car sales in China in 2023 totalled 30.094 million units. The ratio of used cars to new cars reached 0.61:1; looking solely at the passenger car market, the ratio was 1:1.1 — meaning that for every new passenger car sold, 1.1 used passenger cars changed hands. China’s automotive market officially entered a new phase dominated by “stock circulation”.
Breaking down transaction by vehicle age: in 2023, vehicles aged 3 years or less accounted for 27.7% of transactions, those aged 3–6 years accounted for 39.8%, 6–10 years accounted for 22.4%, and over 10 years accounted for 10.1%. The overall vehicle age continued to trend younger, with the share of “almost-new” vehicles (3 years or less) rising for three consecutive years, indicating that consumers are shortening their replacement cycles. By price range: vehicles priced under RMB 30,000 accounted for the largest share at 31.6%; RMB 30,000–50,000 accounted for 22.1%; RMB 50,000–80,000 for 18.4%; RMB 80,000–120,000 for 13.4%; RMB 120,000–150,000 for 5.5%; and above RMB 150,000 for 9.0%.
CADA President Shen Jinjun noted that the two milestones — used car transactions exceeding 18 million units and transaction value breaking RMB 1 trillion — are highly significant. They indicate that China’s auto market is shifting from “incremental expansion” to “stock optimisation”. The circulation efficiency of used cars directly determines the replacement rate of new cars. Going forward, as policy dividends continue to be released — such as the full removal of relocation restrictions nationwide, simplified transaction procedures, and digital file transfer — annual used car transactions are expected to exceed 25 million units around 2027. At that point, China will become one of the largest used car markets in the world.
