Page 57 - B2B All Year Round Vol.8

Scale of Used Car and Car Rental/Lease Market

The domestic used car trade volume is 2.6 million cars a year, and it grew by 2.9% over the last 10 years.
The number of cars managed by rental and lease companies as major car providers to auction markets is increasing fast.
This is expected to increase dealers’ dependence on online/offline auctions.

Domestic Used Car Market Scale Domestic Rented/Leased Car Increase Trend

Used car trade volume by yearUsed car trade volume by year Domestic rental car increase trendDomestic rental car increase trend

(Unit: million cars) (Unit: million cars) Agent sales User SalesAgent sales User Sales (Unit:: 1,000 cars) (Unit:: 1,000 cars) CAGR 42.1%
CAGR 42.1%
2.6
2.5
2.5 2.5 2.5 2.6 971 971
2.3
2.3 2.3 2.3 880 880
837 837
1.9 1.9 1.4 1.4 656 704 656 763 704 763
1.4
1.4
1.3
1.4 1.4 1.3 1.4 1.4 523 562 523 612 562 612
1.1 1.1 459 459
1.2
1.2
1.1 1.1 1.1 1.2 1.2
1.1
0.9
0.8 0.8 0.9
2020E
2018
2016
2012
2010 2010 2012 2014 2016 2018 2020E
2014
20 1Q
15 1Q 15 1Q 16 1Q 17 1Q 18 1Q 19 1Q 20 1Q
18 1Q
17 1Q
19 1Q
16 1Q
Used car trade vs. new car trade by yearUsed car trade vs. new car trade by year Domestic leased car increase trendDomestic leased car increase trend
(Unit:: 1,000 cars) (Unit:: 1,000 cars)
CAGR 9.4%
CAGR 9.4%
(Unit: million cars) (Unit: million cars) Used car trade volume Used car trade volume
New car trade volume New car trade volume
504 509
1.8
1.8 1.8 1.8 1.8 467 467 509 463 504
1.8
463
1.7
1.5 1.5 1.7 427 427
1.5 1.5 321 396 321 396
291
296 309 296 309 291
2.5
2.5
2.6
2.3 2.3 2.3 2.5 2.5 2.6 206 206
2.3
1.9 1.9
2018
2010 2010 2012 2014 2016 2018 2020E
2012
2014
2016
2020E
20132012
2009 20102009 20122011 20142013 20162015 20182017 20202019 2020
20112010
20152014
20192018
20172016
■ The domestic yearly used car trade volume is 2.6 million cars. Of them, 1.2 million cars are traded ■ The number of cars of lease/rental cars as major providers to offline auction markets is growing fast
through dealers. (expired rented/leased cars are mainly traded through auctions).
■ The number of used cars traded over the last 10 years grew to 2.9%,. It is not high, but the ratio of used ■ In 2019, the number of total domestic cars registered isare 16.5 million. Of them, rented and leased cars
cars to the total increased from 56% in 2010 to 59% in 2020. account for 8.8% → lower than in the U.S.A. (28%) and Europe (25%). MARKET INSIGHT 04