Chongqing—China's second-hand car market is booming, with new energy vehicles (NEVs) gaining popularity. According to recent data from the China Automobile Dealers Association (CADA), the country's second-hand car transactions hit a record 19.6 million units in 2024 and are projected to exceed 20 million units for the first time this year.
At the Huanyu Motor dealership, a selection of second-hand NEVs awaits sale. (Photo/Huanyu Motor)
The second-hand NEV market is leading this growth, with 1.13 million NEVs sold in 2024, a 47.9% year-on-year increase. This shift highlights changing consumer preferences, as more people choose electric cars over traditional fuel-powered vehicles.
Chongqing's Banan District, known for its concentration of second-hand car dealerships, is home to key players like Chongqing Huanyu Motor Sales Co., Ltd. A recent visit to the dealership showcased over 60 second-hand vehicles, including 15 NEVs.
A used Li Auto L8 Pro (2024 model), bought in August 2024, was priced at 289,900 yuan (about USD 40,053), offering a 30,000 yuan discount compared to the new model. A second-hand Tesla Model Y from May 2024 was listed at 209,800 yuan, 50,000 yuan lower than its official price.
"Second-hand NEVs from well-known brands have been holding their value well," said Hou Bo, assistant to the general manager of Huanyu Motor. "Brands like Tesla, BYD, Li Auto, AITO, and XPeng are seeing minimal price fluctuations and are selling quickly."
This trend is not isolated to Chongqing. National reports show that second-hand NEV prices are stabilizing. According to Guazi, a second-hand car platform, the resale value of second-hand NEVs is approaching that of fuel-powered vehicles.
For instance, HarmonyOS Intelligent Driving (under Huawei) saw a first-year resale value of 86%, with an average price of 297,200 yuan. Other brands, including Li Auto, and Denza, maintain first-year resale values above 80%, signaling growing consumer confidence.
The standout performer in the market is Xiaomi's NEVs, which have surpassed their original value due to high demand and limited production. Xiaomi's first-year resale rate is 102%, with an average price of 289,300 yuan.
"The resale value of a car depends on its market penetration and popularity," said Hou. "The Tesla Model Y is the highest-selling EV globally, so it's no surprise that its resale value is also the highest among second-hand NEVs."
In 2024, the retail penetration rate of NEVs in China hit 47.6%, up 12% from the previous year. In the latter half of the year, NEVs surpassed 50% penetration for five consecutive months, solidifying their place in the automotive market.
The export potential of second-hand NEVs is also growing. Chen Jiazhi, an expert from the Chongqing Automobile Business Association, noted that many companies have been purchasing used NEVs for domestic ride-hailing services and selling them abroad, generating substantial profits.
Li Guotian, director of the Foreign Trade Management Department of Chongqing Municipal Commission of Commerce, confirmed that over 10,000 second-hand cars have been exported from the city. With Chongqing's efforts to build an intelligent connected NEV industry cluster, the export volume of second-hand NEVs is expected to continue its upward trajectory, becoming a significant contributor to the city's foreign trade.