Second-Hand Car Sales in China Reach 11.27 Million Units in First Seven Months of 2026

Between January and July 2026, China recorded a cumulative total of 11.2748 million used-car transactions, marking a modest year-on-year increase of 0.39 percent, according to data released by the China Automobile Dealers Association.
During the January–June period, the ratio of used-car sales to new-car sales climbed to 97.9 percent, nearly reaching parity at roughly one-to-one. This milestone highlights the rapidly maturing nature of China’s automotive market, where the secondary market is now almost as active as the primary one.
Within the first half of the year, transactions involving new energy vehicles (NEVs) in the used-car segment reached 839,000 units, accounting for 8.6 percent of all second-hand car sales. This represented a robust year-on-year surge of 22 percent, underscoring the growing appetite for pre-owned electric and plug-in hybrid vehicles among Chinese consumers.
A notable trend in the data is the shrinking gap in value retention between traditional internal combustion engine vehicles and their electrified counterparts. Over a three-year ownership period, the average resale value rate for gasoline-powered cars stood at 46.07 percent, while that for NEVs reached 44.8 percent. This narrowing disparity—previously much wider—reflects improving battery technology, greater consumer confidence in EV durability, and a more established used-NEV market infrastructure.
Looking at the broader landscape, China’s total vehicle parc—the number of cars in operation—has hit approximately 370 million units. This massive installed base continues to generate strong replacement demand, as millions of owners cycle out older vehicles for newer models. Industry analysts point to this sustained replacement wave as a key driver of future growth in the used-car sector, with the substantial inventory of aging vehicles expected to feed the market for years to come.
The combination of near-parity between new and used sales, accelerating NEV turnover, and a vast pool of aging vehicles paints a promising picture for the country’s automotive aftermarket. While the overall transaction volume saw only marginal growth in the first seven months, structural shifts in the composition of sales—particularly the rapid rise of electrified vehicles—signal a transforming market. The stable value-retention rates also suggest that buyers are becoming more rational and informed, weighing long-term ownership costs rather than just upfront prices.
As the industry moves forward, the interplay between new-car innovation, government incentives for vehicle replacement, and the expanding second-hand ecosystem will likely define the trajectory of China’s automotive market. With nearly 370 million vehicles on the road, even a modest increase in turnover rates translates into significant absolute volumes, ensuring that the used-car segment remains a vital engine of the broader mobility economy.