The second-hand vehicle market is not exempt from the trends of the automotive industry. The Chinese car industry is booming, and how! In this blog, therefore, an investigation into how the Chinese EV market situation is impacting the demand for China second hand cars can be undertaken.
The Chinese EV market
The Chinese car industry, especially the EV market, is a fast-growing sector because, as of 2022, Chinese brands account for about half of all EVs sold around the world. If you are wondering how this statistic was pulled out of thin air, follow along with the discussion to learn more about the EV market growth in China.
The condition of the EV market in China
If you were to go back in time to the 2000s, you would notice that none of the China car suppliers and automotive manufacturers were capable of keeping up with the rest of the world, always falling short of Europe, America, and Japan.
Now, moving forward to 2022, China sold 6.8 million EVs annually, making it eight years in a row that China has maintained its position as the world’s largest EV market. In comparison, the United States was only able to record 800,000 EVs sold.
The cause of the dramatic market turn
What was the reason behind this dramatic turnaround, where China went from poor performance in the traditional automotive industry to becoming a global leader in the EV industry?
It is said that this success is the result of a big bet that China made against the US in the 2000s. The US has dominated China in terms of gas-powered vehicles in the 2000s, which China considered a challenge that the country chose to meet by focusing on effectively developing its EV market.
Fast-forward to 2023, China overtook the US in the EV market, with a projected production of 13 million, exceeding not only the output of the US but also the joint output of the USA, Germany, and Japan.
Why should EVs be the top choice?
The rising market requirements of sustainability and the increasing demand for China second hand cars and EVs have led to the rise of the question, Why EVs? The following sections of this piece will make an attempt to answer this question.
The growing demand for EVs in China
If you need to know what secret lies behind China’s rise in the EV market, the rising demand for EVs can answer it.
The reason for this rise in demand is China’s commitment to achieving carbon neutrality. China’s commitment towards carbon neutrality has led customers to want to play a part in the mission by switching to EVs from fossil fuel-powered vehicles.
How global trends are impacting Chinese car demand
EVs have received significant recognition as one of the sources in the global effort to meet the Sustainable Development Goals, as emphasized by the United Nations. The 7th SDG is where EVs present their major contribution, which calls for affordable and clean energy for all.
China has also faced challenges in terms of air pollution, which is another reason for the country to follow the UN SDGs. So, while sustainability should not be termed a ‘global trend’, the increasing global consideration of sustainability is one of the contributing factors to the growing demand for EVs in China.
To further cement this point, 14 million electric cars were sold in the world, 95% of which were in China, Europe, and the United States.
Which Chinese car brands are engaging in the EV market
Most of the prominent Chinese car manufacturers have entered the EV market. Among them, as of 2024, BYD has shown dominance in the Chinese EV market with a total of 3.52 million deliveries. As far as the China car suppliers are concerned, BYD, Wuling, Geely, Li Auto, and Changan have reported high sales numbers of EVs in the country.
The impact of EVs on the second-hand car market
Since the Chinese car brands have been reporting effective numbers in the EV markets, Chinese second-hand car suppliers have also increased their focus on selling EVs predominantly.
Thus, if you were to apply for an EV at a top second-hand car supplier in China, you would be provided with a variety of options from top brands such as BYD, Changan, or Geely.
Does the manufacturers’ demand shift impact the second-hand suppliers?
EVs have been reshaping the Chinese car industry, be it from the end of manufacturers or from the perspective of second-hand sellers. Therefore, even in China, second hand cars on display are often EVs.
This is because the second-hand car market is shaped by the changing landscape of automobile manufacturers. Government initiatives have also impacted the role of EVs in second-hand car markets. Tax credits and subsidies are placed on EVs, making them more attractive and affordable, causing the second-hand valuation of such vehicles to rise as well.
Finally, low maintenance and service costs, when compared to traditional cars, also lead to EVs being preferable in the second-hand market. So, if you are looking to purchase a used car, an EV can be both affordable and suitable.
Conclusion
To make concluding statements, the Chinese car industry landscape, particularly the EV market, has shown significant levels of growth in the current landscape. This fact has also been key to second-hand stores increasing the sale of EVs in China. This can be a suitable gateway for you, as a customer, towards EV adoption. And in this regard, China car suppliers can be of help to you.
