March 13, 2020, Shanghai—A few days ago, the first issue of the 2020 “Research Report on China’s Auto Value Preservation Rate” jointly produced by JD Power (Jundi), 58 Automobile and Uxin was officially released. The report shows that although the sales of 70% of auto brands fell in 2019, the sales of the top five brands with the highest value retention rate rose against the trend. This shows that in the stock market, the value retention rate plays an important role in promoting new car sales.
Since 2020, affected by the epidemic, both new car sales and used car transactions have fallen sharply, and the auto industry is in urgent need of recovery momentum. JD Power, 58 Automobile and Uxin jointly released the “Research Report on China’s Auto Value Preservation Rate” at this time, hoping to provide effective and insightful market analysis for promoting new and second-hand car sales, and helping the auto market to survive the cold winter smoothly. In the future, the three parties will continue to cooperate to launch a research report on the preservation rate to reflect market changes in a timely manner.
The three parties have joined forces to create an authoritative value retention rate report with scientific models and massive data
The value preservation rate of the “China Automobile Value Preservation Rate Research Report” is based on the used car transaction data of 58.com, 58 Auto and Uxin platforms in the past year (March 2019 to February 2020), and has been practiced in the United States by JD Power for many years , Mature value retention rate model evaluation calculation and localization verification.
The report pointed out that due to the impact of the epidemic, new car sales in February fell by nearly 80% year-on-year, and used car transactions fell by more than 90% year-on-year. Both the new car and used car markets are not optimistic. At present, the fight against the epidemic has achieved staged victories. OEMs have gradually resumed work and launched online marketing methods such as VR car viewing and live car viewing.
Post-90s are the main force in second-hand car transactions, and 70% of the transaction prices are within 100,000
The report shows that the main force of second-hand car trading is post-90s, of which female trading users account for more than 70%. More than 70% of second-hand car transactions have a transaction price of less than 100,000 yuan, and the transaction price is generally lower than the listed price. There is generally 10% to 20% room for bargaining in Internet used car transactions.
Over 70% of second-hand car transactions have a transaction price of less than 100,000 yuan, source: China Automobile Preservation Rate Research Report (March 2020)
In terms of vehicle age, used cars aged three to five years are the most popular. Among used cars aged three years, vehicles with an average annual mileage of about 30,000 kilometers have the highest average transaction price (117,500 yuan). This is because moderately used used cars are more stable, run in better, and hold their value better.
Second-hand cars with a age of three to five years are the most popular, source: China Automobile Preservation Rate Research Report (March 2020)
Municipalities directly under the central government lead the ranking of value retention rate, and high value retention rate guarantees the sales of auto companies
The report shows that the value preservation rate is gradually increasing from the western region to the eastern region of China. Among them, the four municipalities directly under the central government, Shanghai, Beijing, Tianjin and Chongqing, rank among the top four provincial value preservation rates. Due to the scarcity of models and strong bargaining power, imported models have the highest three-year value retention rate (51.1%), while the three-year value retention rate of self-owned brand models still has a certain gap (44.3%). It is worth noting that the top five car companies (GAC Honda, GAC Toyota, FAW Toyota, Dongfeng Honda and Beijing Benz) with the top five value retention rates all achieved contrarian growth in new car sales in 2019. It can be seen that the value retention rate in the stock market has great significance for sales.
The auto companies ranked TOP1-5 in terms of value preservation rate, all of which achieved a rise in new car sales against the market. Source: China Automobile Value Preservation Rate Research Report (March 2020)
Japanese brands dominate the list, independent brands are hard to find
The report also makes a detailed interpretation of the ten car models, and selects the top ten car models with the highest value preservation rate in each class. As the model with the highest proportion of second-hand car transactions in the sedan field, compact cars have a very small gap in the value preservation rate of the top ten, and the competition is particularly fierce. Among them, Japanese cars have obvious advantages, occupying the top 8 in this segment. In the field of compact SUVs, Japanese cars also dominate the list and occupy the top 9 in this segment.
As a representative of high value preservation rate, in the luxury car rankings, imported cars occupy 7 seats, and most of the front parts are brand models with more complete service systems such as Toyota and Mercedes-Benz. Mercedes-Benz has 5 models on the list, becoming the brand with the most models on the list. Self-owned brands are only slightly competitive in the MPV segment, with Baojun 730, Refine M3 and Wuling Hongguang entering the top ten.
The top ten models in terms of value preservation rate of each model class, source: China Automobile Value Preservation Rate Research Report (March 2020)
Scan the QR code below to get the full version of “Research Report on China’s Auto Value Preservation Rate (March 2020)”.
