Top Biz News

Used car market to rocket over next 2 years

(Xinhua)
Updated: 2007-02-26 10:48

China's used car market is expected to speed ahead over the next two years, the China Association of Automobile Manufacturers (CAAM) predicted.

A previous report said China's used car dealers are expecting business to zoom far ahead of last year as nearly 36 percent of current car owners plan to buy a new or used vehicle.

Statistics from the CAAM showed that more than 1.90 million used cars were traded in China last year, up 31.5 percent over 2005.

The growth rate is 6.37 percentage points higher than that of new car sales. It is the third consecutive year that used car sales growth out paced the growth of new car sales.

In China three out four cars sold are new cars while in the United States, the world's top auto market, the sale of used car is two to three times higher than new car sales.

Only 30 out of every 1,000 Chinese own a car, much lower than the world average of 120.

As the cars of first time buyers begin to age they will begin to buy new ones and sell their old vehicles creating a potential new market, said Yu Yuanbo, vice chairman of China Auto Dealers Association.

The U.S.-based Manheim Auctions, the world's leading auction company of used vehicles opened its second joint auction venture in Shenzhen last month. It's first was set up inShanghaiin November last year.

Neville Green, president of the joint venture, has predicts China's used car sales could exceed 6 million by 2011.

Statistics from the CAAM show new car sales hit 7.22 million last year, up 25.13 percentyear-on-year.

China overtook Japan to become the world's second largest market for new vehicles in 2006 next only to the United States.