The ratio of used-car to new-car sales in developed markets in Europe and the US is stable

Data show that the sales ratio of used cars to new cars in developed markets in Europe and the United States is stable in the range of 2.5-3:1. However, although China's used car market develops rapidly and the sales ratio reaches a record high of 0.67:1 in 2021, it is still only one third of that in developed countries, and there is still sufficient market space.

"As soon as good cars come out, they can be digested in the domestic market. Most of the used cars exported are more than 10 years old, or even on the verge of being scrapped and in need of major repairs. There is no domestic market for these cars and the receiving price for exports is very low, mainly to African countries." Wang Jie told Time Weekly.

According to the Ministry of Commerce, from the export markets, the countries along the "Belt and Road" are the main used car export markets in our country at present, accounting for 97% of the total export volume. In terms of specific export countries, as of June 2021, Nigeria, Angola, Benin, Mongolia and Djibouti are the top five export markets, with the exception of Mongolia, which are all African countries.

According to the analysis in the Country Guide for China's Used Car Export (2021) issued by the Ministry of Commerce, this is mainly due to the underdeveloped automobile industry and low per capita income in developing countries, which have a great demand for imported used cars with high cost performance. For example, more than 90% of vehicles in Myanmar are imported from used cars.

At the same time, the document also pointed out that many developing countries have few restrictions on imported used cars and low tax burden, which have become the main target markets for used car exports. For example, Mongolia has no limit on the age of imported used cars, and at the same time allows the import of second-hand motorcycles, second-hand parts and second-hand machinery, while most countries in Africa allow the import of second-hand cars, and the age requirements are low.