TITLE:
Development of Used Car Market in China
AUTHORS:
Yali Yang, Hao Chen, Ruoping Zhang
KEYWORDS:
Used Car Market; Development; New Features; China
JOURNAL NAME:
Modern Economy,
Vol.4 No.6,
June
17,
2013
ABSTRACT:
Although still in its early development
phase, rapid growth of auto ownership has also injected new vitality for used
car market in China. Under the support of series policy, the used car market reveals
leaping development character with qualified changes. It is essential to
understand the new changes in the used car market. This paper conducted research on the new features of used car market in China to
promote its development. Environment analysis showed that used car market will
be strongly enhanced by the blooming of auto market, rapid GDP growth and
policy support, which experienced steady trade scale increase and structure optimization.
The used car trade experienced steady trade scale increase and structure optimization.
Along with the purchasing pattern changing, significant expansion of the secondhand
car market is imminent, even with hinder issues such as lack of integrity,
evaluation criteria and after-service system, and incomplete policy and
regulation. Several new features were identified, strong policy support,
enlarging market scale and irradiation loop, remarkable concentration increase,
increased status of brand used car, and enhanced trading service platform
establishment. It is indicated that China’s used car market is making the shift
from subordinate position to one of the dominant positions in auto industry,
which is expected into a high speed, up-going development passage in the
future.