In 2020, a total of 14.3414 million second-hand cars were traded nationwide, a year-on-year decrease of 3.90% From China Automobile Circulation Association

The following is the In 2020, a total of 14.3414 million second-hand cars were traded nationwide, a year-on-year decrease of 3.90% From China Automobile Circulation Association recommended by recordtrend.com. And this article belongs to the classification: Automobile industry.

At present, China’s automobile market has entered a new period of increasing replacement to promote market development. Improve the replacement rate, and then drive the sales of new cars, which has become the endogenous driving force to fully activate the automobile market. If we refer to the transaction volume ratio of second-hand cars and new cars in the United States, China’s second-hand car market may reach more than 60 million in the future. The superposition of this data and new car sales can stimulate the huge space of the auto market. The used car market will soon become an important force driving China’s auto market forward. However, due to various reasons, China’s second-hand car market has failed to meet everyone’s expectations.

NO.1

In 2020, the sales volume decreased by 3.90% year-on-year

According to the data released by China Automobile Circulation Association, in 2020, a total of 14.3414 million second-hand cars were traded nationwide, a year-on-year decrease of 3.90%, and the transaction amount was 888.837 billion yuan, a decrease of 5.0% over last year.

Affected by the epidemic in the first half of this year, only the trading volume of second-hand cars in May increased slightly compared with the same period last year, and other months were lower than the same period in 2019, especially in February, a year-on-year decrease of 91%; In the third quarter, the national trading volume changed from decline to rise, with double-digit year-on-year growth for four consecutive months from August; In December, the trading volume of the national second-hand car market was 1.7079 million, with a month on month increase of 8.52% and a year-on-year increase of 1.27%, a record high.

From the perspective of the main trading models in the used car market, a total of 8.5868 million basic passenger cars were traded in 2020, a year-on-year decrease of 0.32%; A total of 1370700 SUVs were traded, a year-on-year decrease of 7.44%; A total of 831900 MPVS were traded, a year-on-year decrease of 13.09%; A total of 339300 cross passenger vehicles were traded, a year-on-year decrease of 9.16%; 1233700 passenger cars, a year-on-year decrease of 12.73%; There were 1326100 trucks, a year-on-year decrease of 3.11%.

In terms of subregions, East China accounts for more than one third, with a total of 4.7912 million vehicles traded, accounting for 33.41% of the national trading volume. This was followed by the south central and southwest regions, with 3.9366 million and 1.9879 million vehicles respectively, accounting for 27.45% and 13.86% of the national trading volume. The three regions accounted for 74.72% in total. North China, Northeast China and Northwest China traded 1.883 million, 1.067 million and 736100 vehicles respectively, accounting for 13.13%, 7.02% and 5.13% of the national trading volume.

Since 2011, the national second-hand car transaction volume has maintained a rapid growth momentum; The decline in 2020 was mainly due to the impact of COVID-19 and the sharp decline in volume in February and March. The Circulation Association predicts that the trading volume of second-hand cars is expected to reach 16 million in 2021, with a year-on-year increase of more than 10%.

NO.2

At present, used car brokerage companies still occupy the main position

Today, second-hand car brokerage companies still occupy an absolute market dominant position in China’s second-hand car industry. According to the ranking and analysis report of the top 100 used car trading markets in China’s automobile circulation industry in 2020 released by China Automobile Circulation Association, there are 20744 brokerage enterprises in the top 100 used car trading markets, accounting for 96%, and only 547 distribution enterprises, accounting for 2.53%.

Second hand car brokerage is a business activity realized through intermediary, brokerage or agency for the purpose of collecting Commission and promoting others to trade second-hand cars. According to the old tax system, second-hand car dealers operating in this way usually do not need to pay value-added tax, as long as they issue second-hand car transaction invoices from the trading market, and the cost generally does not exceed 500 yuan. Second hand car distribution enterprises need to issue value-added tax invoices due to the collection and sales behavior. If they pay tax by 2% of the total amount. Therefore, in order to avoid tax, most car dealers carry out business in the name of brokerage companies.

It can be said that the tax policy is the crux that leads second-hand car dealers to engage in the business of distribution enterprises in the name of brokerage enterprises. Luo Lei, Deputy Secretary General of China Automobile Circulation Association, said that accelerating the reform of second-hand car tax policy is conducive to solving the problem of tax injustice in the current tax policy and the long-term small, scattered and weak state of the industry caused by the individual brokerage model, cultivating new second-hand car business entities, and supporting large second-hand car distribution enterprises, chain enterprises The growth of e-commerce platform and dealer group’s second-hand car business, the promotion of the second-hand car business model of new and old car linkage, and the synchronous improvement of new car consumption can effectively promote the circular circulation of new and old car consumption.

NO.3

Tax reform speeds up the upgrading of models in the used car market

On April 8, 2020, the Ministry of Finance and the State Administration of Taxation issued the announcement of the Ministry of Finance and the State Administration of Taxation on value-added tax policies related to second-hand car distribution, which made it clear that from May 1, 2020 to December 31, 2023, taxpayers engaged in second-hand car distribution will sell their purchased second-hand cars, and the value-added tax will be reduced by 2% at the rate of 3% according to the original simple method, and adjusted to 0.5% at the rate of 0.5%.

The industry believes that this is a long-awaited heavy favorable policy for the second-hand car industry, which will have a fundamental impact on the business format of the second-hand car industry. At the same time, it will gradually eliminate some factors that have plagued the second-hand car industry and accelerate the transformation and upgrading of the traditional second-hand car trading market.

After the implementation of the new deal, the current business format of the second-hand car industry based on brokerage mode will gradually change to distribution mode. After the tax reduction, the tax avoidance channel of traditional second-hand car dealers adopting brokerage mode will be gradually closed. The implementation of the new policy will force enterprises to pay taxes in compliance, which is not only the obligation of enterprises, but also encourage enterprises to establish brand awareness, carry out fair competition, and finally embark on the road of emphasizing integrity, strength and service.

The new deal for second-hand cars will attract dealer groups and OEMs with strong compliance awareness and strong economic strength to pay more attention to the field of second-hand cars. It will also be conducive to the development of professional large-scale second-hand car dealers. It will promote the transformation and upgrading of the second-hand car industry from the business mode of mom and pop stores and brother stores to the professional second-hand car trading market with 4S stores to improve the proportion of second-hand car transactions and standardize operation.

Tax compliance will lay a foundation for the transformation of the second-hand car industry from scattered family operation to large-scale chain operation. On the basis of large-scale chain operation, the industry will enter the integration period, some large second-hand car dealers will be born, and the second-hand car business of the dealer group will also be greatly developed.

NO.4

Used car export faces great challenges

By the end of 2020, China’s car ownership has reached 281 million. If the annual precipitation rate of second-hand cars in the future reaches the level of 15% in developed countries, it means that more than 40 million second-hand cars will be “produced” every year, which will provide huge space for China to vigorously develop the export of second-hand cars.

Japan, the United States and South Korea are the three largest exporters of used cars in the world, with an annual export volume of nearly 3 million units and an overall transaction volume of nearly 20 billion US dollars.

Although the expected market space and potential of China’s second-hand car export industry are huge, the challenges are huge at the same time; The challenges mainly come from: several major used car exporting countries in the world have formed a mature industrial chain, and the accumulation of public praise is also very good; These countries are powerful automobile countries, and the sales of new cars abroad are huge, so the sales channels are also very rich and the after-sales service is guaranteed. The export of new cars of China’s own brands is still in a weak position, which can not match with the export of second-hand cars.

Some experiences of Japan’s used car export industry:

In 2005, Japan launched the law on the recycling of scrapped cars. Consumers have to pay a certain fee for scrapped cars, and this fee can be refunded for second-hand car exports, which greatly improves the enthusiasm for second-hand car exports. At the same time, Japan’s second-hand car depreciation is faster and the price is lower, and the cost performance of exports in the international market highlights its advantages.

Japan has established a mandatory second-hand car export inspection system since the 1870s, which requires that vehicles can be exported only after they meet the standards; With the continuous improvement of vehicle conditions and the transparency of vehicle information, the compulsory inspection system was abolished in 1997. However, export vehicles still need to meet the target market access requirements, and the relevant tests are completed by authorized Japanese enterprises.

Japan’s guild organization and management is very mature. Various guild organizations such as second-hand car auction and second-hand car detection play an important role in promoting. The overall industry norms, operation efficiency and association value are fully reflected, realizing the real boost of second-hand car export.

Japanese second-hand cars have achieved the best quality and low price. While selling cars, professional testing, guarantee services, parts provision and other supporting services are in place. In addition to the product itself, there are channels and financial services. For example, USS, Japan’s largest used car trading platform, mainly serves car dealers, who help customers choose cars. After the used car enters the parking lot of USS, a special third-party testing organization will test the car. The description of the car condition has nothing to do with USs, which eliminates the possibility of manipulation by USS.

Advantages of Japan’s used car export:

1. Japan has formulated complete public policies and regulations to ensure the orderly development of second-hand car transactions.

2. Japan has established a perfect information management system, which can record all the information of the whole life cycle of used vehicles from delivery to scrapping. Consumers can query the vehicle information through the online VIM code.

3. A fair used car evaluation system has been established. Due to different regulations on imported used cars in various countries, Japan also has corresponding testing institutions for these regulations.

4. Japanese cars have low failure rate, good quality, short renewal cycle and less driving mileage, which provides a good vehicle condition foundation for second-hand cars exported.

5. Japan’s second-hand car industry generally adopts the form of large-scale auction, which speeds up the market circulation of second-hand cars.

6. Japan has established a relatively perfect maintenance and after-sales system overseas. The global sales network layout of Japanese brands such as Toyota is relatively sound. Based on the long-term vehicle ownership in the export market and the after-sales network layout of new car export, Japan has seized the market opportunity in the second-hand car export destination country.

Therefore, as an important part of China’s automobile industry, the success of second-hand car export depends on the system of the whole automobile industry, including China’s automobile manufacturing level, second-hand car maintenance records, vehicle conditions, prices, repairs and accessories, storage, logistics, testing, auction, customs declaration and shipping at the export port, overseas sales channels, storage, logistics, after-sales service and accessories, And tax support. All this is a severe test.

In April 2019, the Ministry of Commerce, the Ministry of public security and the General Administration of Customs jointly issued the notice on supporting the export business of second-hand cars in areas with mature conditions, and the first batch of second-hand car export business was carried out in 10 regions including Beijing, Tianjin and Guangdong. On November 30, 2020, the Ministry of Commerce announced 20 new pilot cities for second-hand car export in China.

One belt, one road, is expected to become a better partner than China and Europe.

At the 2020 China second-hand car export development forum held in November, Qin Zhiwei, President of the second-hand car export branch of China Automobile Circulation Association, pointed out that logistics and finance, as an important link in the second-hand car export business, play an important role in the smooth progress of the export business. Among them, the logistics cost of second-hand car export accounts for 30% – 50% of the total cost, which is the top priority of the core competitiveness of export. He suggested that export enterprises unite with automobile terminals, shipping companies, third-party logistics companies (land transportation, water transportation, etc.) and storage companies, concentrate shipping resources, establish second-hand car export logistics alliance, and build a multi-modal transportation system for second-hand car export, Establish the logistics network system of “international logistics + domestic trade logistics + point-to-point transportation”, “new car + second-hand car double dragon going to sea” and “domestic logistics hub + overseas warehouse”, integrate the resources of all parties, give full play to the advantages of all parties, and reduce the overall logistics cost of second-hand car export.

One belt, one road vehicle, should be used for reference. The financial support for the automobile industry in Japan will be used as an important national strategy. The fund will be launched to guide the banks and other financial institutions to increase the financial support policies for the auto export industry, and encourage the investment cooperation between domestic automobile brand enterprises and export enterprises. Vigorously promote the rapid development of overseas investment of automobile export enterprises. Combine banking, insurance and other financial institutions and industrial capital to provide professional, multi-level and diversified financial services for second-hand car export enterprises. OEMs and export enterprises jointly set up automobile export financial services companies to launch financial products and services for export enterprises, overseas dealers and overseas retail customers.

The breakthrough of China’s second-hand car export industry is not a day’s work, so we need to lay a solid foundation. At the same time, the state needs to formulate industrial policies and vigorously support the development of the industry; Formulate industry management system and standardize industry operation.

More reading: China Automobile Circulation Association: April 2020 China imported automobile market monthly report China Automobile Circulation Association: in March 2020, the sales volume of domestic narrow passenger car market reached 1045000, a year-on-year decrease of 40.4%. China Automobile Circulation Association: in the first quarter of 2020, luxury brands added 57 authorized 4S stores and returned 41 4S stores. China Automobile Circulation Association: delivered in the national second-hand car market in February 2020 The trading volume was 71100, and the trading volume decreased by 92.78% month on month. China Automobile Circulation Association: a brief analysis of the second-hand car market in February 2021. China Automobile Circulation Association: in-depth analysis of the national second-hand car market in January 2021. China Automobile Circulation Association: in-depth analysis of the second-hand car market in January 2021. China Automobile Circulation Association: in-depth analysis of the second-hand car market in November 2020. China Automobile Circulation Association: in-depth analysis of the second-hand car market in November 2020 Handcart price index China Automobile Circulation Association: ranking of the top 100 second-hand car dealers in 2020 China Automobile Circulation Association: a brief analysis of the second-hand car market in June 2020 China Automobile Circulation Association: in-depth analysis of the national second-hand car market in March 2020 China Automobile Circulation Association: overview and form analysis of the second-hand car market [2] China Automobile Circulation Association: a brief analysis of the second-hand car market in China in March 2020 Automobile Circulation Association: comparison of used car business between Chinese and American automobile 4S stores

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