In March, China’s used car transaction volume recovered nearly 80%. Editor’s note: This article comes from ”
future car Daily “(micro-channel public number ID: auto-time), Author: Zhang.
Author | Zhang Yi
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After two consecutive years of decline in production and sales, China ’s auto industry, which has 260 million vehicles in ownership, is expanding from an incremental market to an inventory market. And the circulation of used cars has become the growth point of China’s auto market.
Shen Jinjun, president of the China Automobile Dealers Association, said recently that it is very important to revitalize the inventory of second-hand cars and drive new car increments through replacements and transactions. The value-added tax rate for second-hand cars is reduced from 2% to 0.5%, which will greatly increase the replacement rate To fully activate the endogenous power in the automotive market.
Shen Jinjun conservatively estimates that 10% of China ’s car ownership (260 million) (26 million) has entered the replacement period. He believes that if we refer to the ratio of US used car to new car transaction volume (2.35 times), the Chinese used car market may reach more than 60 million in the future.
On April 9, the Ministry of Finance and the State Administration of Taxation jointly issued the “Announcement on VAT Policy on Used Car Dealership”, saying that from May 1 to 2023 On December 31, taxpayers engaged in the distribution of second-hand cars sold the second-hand cars they acquired, and the VAT was reduced by 0.5% at the rate of 3% according to the simplified method.
For a long time, due to the heavy tax burden on second-hand car transactions, the Chinese second-hand car market is not large enough in trading volume, and the operating entities are “scattered and weak.” Relevant agencies estimate that the reduction in value-added tax will reduce the tax on the used car market by nearly 10 billion yuan, which will promote the scale and standardized operation of used cars. After the implementation of the New Deal, a large number of second-hand car sources will flow out of car rental companies, 4S stores, and OEMs and be auctioned, which will greatly drive Chinese car consumption.
According to the China Automobile Dealers Association, China ’s first quarter of this year completed a total of 2.0056 million used car transactions, a year-on-year decrease of 38.4%. The transaction value was 122.153 billion yuan, a year-on-year decrease of 41.22%. In March this year, the Chinese used car market transaction volume was 94.97 10,000 vehicles, trading volume recovered to 76% of the same period last yearThe transaction amount was 58.785 billion yuan.
In addition, the reduction of used car value-added tax will not only benefit the used car business itself, but also promote the development of related businesses such as used car retail finance and used car inventory financing. According to the “Blue Book of China’s Automobile Circulation Industry”, in 2019, China’s second-hand car business contributed only 2.2% of profits to dealers. Lang Xuehong, deputy secretary-general of the Circulation Association, said that compared to used cars in the US and other markets that contribute up to 20% of profits, China’s used car business still has a lot of room for development.
However, the implementation of the policy is still relatively cumbersome. At present, the main body of enterprises engaged in second-hand car business is individual industrial and commercial households, accounting for nearly 65%. Moreover, the problems of the transfer efficiency of the transfer of second-hand cars in cross-regional circulation, the issue of confirmation of temporary property rights, the release of the qualification of used car dealership in some areas, and the construction of industry integrity are all difficult.
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