China’s used car market expects steady rebound in 2023

This undated photo shows visitors checking a used car market in Yichang, Hubei province. (LIU JUNFENG / CHINA DAILY)

BEIJING – China's used car market is expected to see a steady recovery this year, with a sales volume possibly reaching 20 million units, industry data showed.

In January, about 1.25 million second-hand vehicles were traded in China, with a total transaction value of 78.03 billion yuan (about $11.36 billion), according to the China Automobile Dealers Association.

The trade volume went down 15.93 percent year-on-year, said the association, noting that the drop was due to a shorter trading period as most dealers closed shops early to return to their hometowns for family reunions during the Spring Festival.

Meanwhile, it emphasized the increase in demand before the week-long Spring Festival holiday, saying the expansion of traffic to stores and quicker inventory clearing indicated a sound recovery of the market.

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The association also forecast a year-on-year sales growth in February and projected a rebound of the industry in 2023. Survey data showed that about half of the used car dealers expected more than 20 percent of the growth in trade volume this year, it said.