What’s a popular trend in most regions of the world, was unknown to China until the 2000s. Automotive market research reports claim that most people were only buying new cars. But China is finally adopting the trend drilling holes in people’s pockets and the ozone layer at a slower rate than earlier.
Used cars are not only economical but also reduce the carbon footprint greatly. All the energy and resources that go into procuring raw materials, the production processes, and the assembly of new cars are saved. This, according to market research data, means that about 35% of the vehicle’s lifetime carbon emissions is saved! Apart from lowering the carbon footprint of the country, what other impacts can this new trend have on the vast land of China?
The country before and after entry into the used car market
There are a plethora of considerable reasons why the Chinese did not favor the used car market. The primary reason being the poor-quality manufacturing. The prototypes were designed to be affordable and not necessarily durable. The prospective second-hand buyers had no ways that could determine the accident history or other necessary specifics of the vehicle in a concrete manner.
Moreover, the local government’s regulations did not allow choice. Cross-province sale of used vehicles was restricted as a way of supporting the indigenous makers and dealers.
Now, the government has begun freeing the population from such rules. People are starting to realize the value of secondhand cars. The sales of used cars in China have only gained pace since the 2010s and are still not at par with most of the world.
An advancement that has aided the thriving of this market is the improvement in production quality. Cars now meet the quality and safety standards and, therefore, last longer than earlier. With the prevailing conditions, a forecast analysis from market research would predict that the used car market will continue to grow while continuing to remain uncompetitive. The US has been among the behemoths of this sector and China, in 2020, despite all the progress, will remain years away from matching up to it.
The used car market has definitely added value to China’s economy. Investors are noticing its growth and have bet billions of money on it already. This creates possibilities for the entry of entrepreneurs next. Many car companies have already begun schemes for second-hand cars.
How will this serve the government’s motives?
The entry of the used car market into China sets up a network in which the government and its citizens can live symbiotically.
The government has stated its will to go completely electric on road in the coming years. The used car market is driving China towards the low-carbon future that its government wishes for while creating no financial loss for it citizens.
Gradually, as an increasing number of clean-tech based cars will be made, traditional engine run vehicles will transition to second and third owners. They will soon be eased out of the system creating no troubles.
The used car market is thus seen to build a promising model for China’s prosperous future.
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