"Nihon Keizai Shimbun" reported on February 27 that in China, the world's largest auto market with over 20 million new cars sold, used cars have always been respected by car buyers because of their love for face and even a bit of vanity. However, more and more consumers are now paying attention to convenience and prices, and the used car market is continuously expanding. Various automakers have also begun to devote themselves to the sale of used cars, and modern car recycling factories are also building up.
“Increased numbers of young people are the main recipients of used cars,†said the person in charge of the Dongfeng South Used Car Center in Shenzhen, Guangdong Province, in southern China.
Approximately 300 square meters of shops are parked with dozens of used cars. These cars are all passenger cars that are recovered from customers by the Dongfeng Nissan brand new car store. The small cars such as the "Tiida" and "Chanwei" cars are within a five-year-old car and are priced at around RMB 100,000 for a new car.
According to statistics from the China Automobile Dealers Association, sales of used cars increased by 16.7% from the same period last year to 5,451,100 units. Sales volume increased by 26.4% year-on-year to 327.726 billion yuan. Some people think that there are many cases in which individuals are buying and selling used cars in China. The actual market scale in 2014 exceeded 10 million.
There have been many opaque trading practices in the used car market. For example, odometer hands and feet to shorten the number of kilometers traveled, using poor parts to repair the fault site, "so that ordinary consumers dare not approach" (Japanese car manufacturers executives). However, China's used car sales market is gradually changing.
The first is that automakers that produce new cars are beginning to work on the used car business. In Dongfeng Nissan's new car sales shop, for customers who come to seek a replacement car for a used car, the clerk will input information such as driving mileage, body color, and whether or not there are scars through the tablet computer. It will also be from the front left, front right, side of the car and Take photos at multiple angles behind. After the data is transmitted to the system, a trade-in price will be generated in about 15 minutes.
Internet-related companies are also targeting the used car market. China’s largest e-commerce company, Alibaba Group, teamed up with China’s large car dealer Guanghui Automotive Services in 2014 to engage in used car sales. Its platform is "Taobao." The specific approach is to use Guanghui's experience in the evaluation and maintenance of used cars to sell online.
Guanghui has approximately 500 physical stores in China and undertakes business from delivery to maintenance and inspection. Users purchase online can enjoy the same services as buying in a physical store.
According to Chinese media reports, China’s car ownership is currently 154 million vehicles. Its size is second only to 240 million U.S. vehicles, and more scrapped cars were discarded. At present, China has begun to build a system for the reuse of resources such as iron and copper.
Toyota Tsusho was the first foreign-funded company to invest in the automotive dismantling industry in China. In February 2014, Toyota launched the auto dismantling plant in Beijing. It is estimated that the current annual fleet of 500,000 scrap cars will increase to 1 million vehicles by 2018. In addition to Beijing, it also plans to build factories in 20 cities in China.
Toyota's dismantling plant uses modern equipment to recycle copper and iron with high efficiency, and recycles it to gain profits. In Japan, Toyota Tsusho began its automotive recycling business approximately 40 years ago.
The Chinese car ownership rate is only about 10%. Compared with Japan and Europe and the United States, which have a retention rate of 60-80%, there is still a lot of room for growth. Old cars will also increase in the future. With the re-use of used car sales and parts, companies that have discovered new business opportunities are expected to grow.
“Increased numbers of young people are the main recipients of used cars,†said the person in charge of the Dongfeng South Used Car Center in Shenzhen, Guangdong Province, in southern China.
Approximately 300 square meters of shops are parked with dozens of used cars. These cars are all passenger cars that are recovered from customers by the Dongfeng Nissan brand new car store. The small cars such as the "Tiida" and "Chanwei" cars are within a five-year-old car and are priced at around RMB 100,000 for a new car.
According to statistics from the China Automobile Dealers Association, sales of used cars increased by 16.7% from the same period last year to 5,451,100 units. Sales volume increased by 26.4% year-on-year to 327.726 billion yuan. Some people think that there are many cases in which individuals are buying and selling used cars in China. The actual market scale in 2014 exceeded 10 million.
There have been many opaque trading practices in the used car market. For example, odometer hands and feet to shorten the number of kilometers traveled, using poor parts to repair the fault site, "so that ordinary consumers dare not approach" (Japanese car manufacturers executives). However, China's used car sales market is gradually changing.
The first is that automakers that produce new cars are beginning to work on the used car business. In Dongfeng Nissan's new car sales shop, for customers who come to seek a replacement car for a used car, the clerk will input information such as driving mileage, body color, and whether or not there are scars through the tablet computer. It will also be from the front left, front right, side of the car and Take photos at multiple angles behind. After the data is transmitted to the system, a trade-in price will be generated in about 15 minutes.
Internet-related companies are also targeting the used car market. China’s largest e-commerce company, Alibaba Group, teamed up with China’s large car dealer Guanghui Automotive Services in 2014 to engage in used car sales. Its platform is "Taobao." The specific approach is to use Guanghui's experience in the evaluation and maintenance of used cars to sell online.
Guanghui has approximately 500 physical stores in China and undertakes business from delivery to maintenance and inspection. Users purchase online can enjoy the same services as buying in a physical store.
According to Chinese media reports, China’s car ownership is currently 154 million vehicles. Its size is second only to 240 million U.S. vehicles, and more scrapped cars were discarded. At present, China has begun to build a system for the reuse of resources such as iron and copper.
Toyota Tsusho was the first foreign-funded company to invest in the automotive dismantling industry in China. In February 2014, Toyota launched the auto dismantling plant in Beijing. It is estimated that the current annual fleet of 500,000 scrap cars will increase to 1 million vehicles by 2018. In addition to Beijing, it also plans to build factories in 20 cities in China.
Toyota's dismantling plant uses modern equipment to recycle copper and iron with high efficiency, and recycles it to gain profits. In Japan, Toyota Tsusho began its automotive recycling business approximately 40 years ago.
The Chinese car ownership rate is only about 10%. Compared with Japan and Europe and the United States, which have a retention rate of 60-80%, there is still a lot of room for growth. Old cars will also increase in the future. With the re-use of used car sales and parts, companies that have discovered new business opportunities are expected to grow.
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