China's used car market recorded 8.095 million transactions from January to May 2026, up 2.3% year-on-year. For the first time, the ratio of new-to-used car sales reached 1:1, signaling a structural shift in China's automotive consumption landscape.
Historic Turning Point: New-to-Used Ratio Reaches 1:1
On July 10, the 2026 China Used Car Conference convened in Wuxi, Jiangsu, under the theme "Reconstruct · Renew." Xiao Zhengsan, president of the China Automobile Dealers Association (CADA), identified eight major shifts reshaping the sector.
- Jan-May transactions: 8.095 million units, up 2.3% year-on-year
- New-to-used sales ratio: 1:1 for the first time in history
- Conference theme: "Reconstruct · Renew"
With new car demand remaining soft, the used car market has demonstrated remarkable resilience, effectively supporting overall automotive consumption.
Policy Tailwinds Accelerate Growth
A wave of supportive policies preceded the conference:
- Trade-in subsidy policies were refreshed and continued
- NEV rural campaigns were launched in depth
- Aftermarket consumption boost measures were introduced
A State Council briefing recently emphasized the importance of facilitating efficient used car circulation. Additionally, a list of pilot cities for circulation and consumption reform was released, creating a more favorable regulatory environment.
Eight Transformational Shifts
President Xiao outlined eight key changes currently reshaping the industry:
- Closer integration between new and used car sales
- Smoother domestic circulation and international export channels
- Rapidly changing vehicle age structures
- Fast-expanding niche segments
- Rising brandization trends
- Accelerated digital transformation
- Upgraded service systems
- Emergence of used NEVs as a growth segment
The rise of used NEVs deserves particular attention. As the NEV installed base continues to climb, second-hand electric vehicle transaction volume is growing rapidly, though challenges remain in battery health assessment and residual value calculation.
Core Market Indicators Jan-May 2026
| Indicator | Data | YoY / Note |
|---|---|---|
| Transaction Volume | 8.095 million units | Up 2.3% |
| New-to-Used Ratio | 1:1 | First time in history |
| Conference Location | Wuxi, Jiangsu | First time hosting |
Export Opportunities and Internationalization
China's used car exports have maintained rapid growth momentum:
- Strong price competitiveness and diverse model choices
- Commercial vehicles and SUVs are well-stocked
- Relatively new vehicle conditions meet diverse overseas demand
For buyers in Central Asia and Russia, Chinese used vehicles are becoming an increasingly attractive option. Compared with new cars, used vehicles offer more compelling pricing advantages, and with the rapid growth of Chinese-brand vehicle ownership, the supply of quality used inventory is becoming increasingly abundant. EX1000.COM provides the latest information and procurement channels for overseas buyers of Chinese used car exports.
Looking Ahead
As industry standardization improves, digital trading platforms mature, and policies such as trade-in subsidies continue to drive momentum, China's used car market is well-positioned for sustained growth. The 1:1 ratio is just the beginning—the used car sector is evolving from a supporting role to a co-lead alongside new car sales.
