China Used Car Market Q1 2026
Currently, the domestic used car market continues its post-Spring Festival recovery trend, exhibiting characteristics of "continued recovery and stabilizing growth." Transaction volume is steadily rebounding, regional differentiation is intensifying, and vehicle type and residual value are showing significant differences. Under policy guidance, the industry is gradually developing towards standardization and high quality, with key indicators reflecting the characteristics of this stage of the market.
In terms of total transaction volume, the market recovery momentum continues to be released, exceeding pre-holiday levels. According to data from the China Automobile Dealers Association, market activity has remained high since mid-to-late March.
From March 16th to 22nd, the national average daily used car transaction volume reached 72,700 vehicles, a 2.88% increase compared to the previous week; from March 9th to 15th, the average daily transaction volume was 70,600 vehicles, a 7.88% increase compared to the previous week. This steady growth for two consecutive weeks confirms the market's gradual return to its annual normalcy in March.
Based on the overall data for the first quarter, the national used car transaction volume reached 1.7292 million vehicles in January, a year-on-year increase of 18.33%, with a transaction value of 110.612 billion yuan. This laid a solid foundation for the market recovery in March, and the transaction volume is expected to continue its positive trend throughout March.
Regional performance showed significant differences in the pace of recovery across regions, with core areas leading the growth. East China, as the largest used car trading region in the country, saw a steady recovery, with an average daily transaction volume of 27,100 vehicles from March 16th to 22nd, a month-on-month increase of 4.35%. Potential cities such as Xiamen and Nanchang within the region saw significant increases, while the growth rate of core cities such as Hangzhou and Shanghai narrowed.
The Central and Southern regions showed strong recovery momentum, with an average daily transaction volume of 29,400 vehicles during the same period, a month-on-month increase of 4.91%. Cities such as Changsha, Haikou, and Nanning all saw increases exceeding 9%, indicating a concentrated release of demand.
North China and Northeast China saw a simultaneous recovery, with daily transaction volumes of 3,300 and 2,600 vehicles respectively, both showing a month-on-month increase of over 4%, and transaction activity improving in most key cities.
In contrast, Southwest and Northwest China entered a period of adjustment, with daily transaction volumes decreasing by 6.55% and 9.53% month-on-month respectively, and transactions in some cities showing a significant decline. The regions as a whole are in a phase of structural optimization.
Regarding vehicle type and price structure, the trend of consumption upgrading continued, with significant differentiation in residual value. Among passenger vehicles, basic sedans and SUVs maintained growth, while MPVs saw a year-on-year increase of 25.06%, performing exceptionally well.
The sedan market exhibited a "premiumization" characteristic, with the proportion of A-class cars decreasing and the share of B-class and above models increasing. In terms of vehicle age structure, vehicles aged 3 to 6 years remained the main drivers of transactions, accounting for 43.45%, while the proportion of nearly new vehicles (less than 3 years old) increased to 29.29%, mainly due to the trade-in policy, which brought a large number of well-maintained nearly new vehicles into the market.
In terms of average transaction price, the overall average price in the first quarter was 64,000 yuan, a slight decrease of 2,000 yuan year-on-year. New energy used cars performed exceptionally well, with January transaction volume reaching 157,900 units, a significant year-on-year increase of 73.9%, with notable growth in the 50,000-80,000 yuan price range.
Regarding residual value, Japanese hybrid vehicles, German luxury mid-size SUVs, leading domestic new energy brands, and rugged off-road vehicles have relatively high residual values, generally exceeding 60% after three years. However, less popular new energy vehicles, high-fuel-consumption American large SUVs, and niche European luxury cars depreciate rapidly, with some models having a residual value of only 50% after one year.
On the policy front, the new regulations for used cars will be fully implemented in 2026, coupled with the continued efforts of the trade-in program, leading to increasingly standardized market order and revitalized market activity. The new regulations explicitly require the use of standardized contracts, mandate third-party vehicle inspection reports, and clarify warranty requirements for core components.
They also simplify the transfer process, enabling "cross-provincial processing," effectively curbing industry irregularities such as odometer tampering and accident-damaged vehicles, and boosting consumer confidence in purchasing cars.
The trade-in program has attracted a large influx of high-quality used cars into the market. As of the end of March, the program had received 1.008 million subsidy applications, driving new car sales to 164.43 billion yuan. It has also boosted the used car transfer rate to 35.03%, making cross-regional circulation more active.
Overall, the domestic used car market is showing a clear recovery trend. Regional and vehicle-specific differentiation remain key characteristics, and the industry's standardization continues to improve under policy guidance.
As the market gradually returns to normal, the supply of high-quality vehicles increases, and transaction processes are simplified. The market is expected to maintain steady operation, with new energy used cars and cross-regional circulation becoming important drivers of market growth.
