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Whether buying a new car or a used car, in addition to considering the brand, vehicle appearance, configuration and power, the "ranking of car preservation rate" is also an indicator that consumers pay close attention to when buying a car. On July 1, the China Automobile Circulation Association and Jingzhen Evaluation jointly released the report on the preservation rate of automobile value in China in June 2022, which shows that there has been a general decline in the preservation rate of all levels of models in June 2022.

In the preservation rate of independent brands, the data show that the three-year preservation rate of the 15 independent brands listed in June declined collectively, with the top three car companies falling sharply. In terms of specific breakdown, Wuling brand still ranks first with a value preservation rate of 67.7%, but it is down 2.1% from May, which is the largest among domestic car brands. Lectra Motor fell to third place, down 1.6% from May. The main reason for the decline in Lecker's value preservation rate may be poor market performance, while Chuanqi is down 1.4%. In addition to these three major brands, including Baojun Automobile, Chery Automobile, Geely Automobile, BYD and Red Flag Motor and other brands have also declined.

(source: China Automobile Circulation Association)

In the preservation rate of luxury brands, Porsche, Lexus and Mercedes-Benz are still in the top three, with preservation rates of 93.3%, 86.3% and 72.9% respectively, all showing a month-on-month decline, of which Lexus dropped nearly 3% month-on-month. Among the three major BBA brands, Mercedes-Benz and Audi also declined and fell sharply. It should be noted that American brands were relatively strong, with Lincoln, Cadillac and Tesla all rising month-on-month, while Tesla had the biggest increase, up 1 per cent from May.

(source: China Automobile Circulation Association)

In the ranking of the preservation rate of mainstream overseas brands, Japanese brands rank relatively high, with Toyota, Honda, Mitsubishi, Mazda and Nissan ranking first to fifth respectively, but generally speaking, except for Mitsubishi brands, the preservation rates of other brands show a downward trend, among which Toyota and Honda are in the first echelon of the preservation rate, but the overall differentiation intensified, and the preservation rate of Toyota fell below 77%. Honda also has only 76.4%. Volkswagen, Kia and Buick fell 1.2 per cent, 1.7 per cent and 1 per cent respectively compared with May. Hyundai ranked sixth with a preservation rate of 64.2 per cent, making it the only joint venture brand to rise in June.

(source: China Automobile Circulation Association)

In addition, the China Automobile Circulation Association said that brands such as JEEP and Renault are on the verge of delisting or have been delisted, so the value of used cars has fallen sharply. Specifically, the preservation rates of JEEP and Renault fell 4.2% and 4.4% respectively, mainly due to the performance of the brand in the market. For example, the JEEP brand has been exposed many times before that dealers have no cars to sell. The sales staff of a Jeep brand 4S store in Shanghai once said: "now the domestic models are gone, the inventory has long been sold out, and we do not accept bookings. The manufacturer has no production schedule, and production is currently suspended." In a 4S store of the Jeep brand in Pudong, Shanghai, in addition to imported models, there are still some free light and big commander's inventory cars available for sale, but they have been in stock for more than half a year. Store salesperson said: "Free Light and the Big Commander's inventory cars were produced last year, we must now give priority to selling inventory cars, and the discount is also strong." As for Renault, with the delisting of Dongfeng Renault, Renault's preservation rate began to decline. According to the development pattern of the automobile industry, the market competition is becoming more and more fierce, while the weak brands are facing elimination.

In terms of the value preservation rate of all levels of models, the value preservation rate of all levels of models was on a downward trend in June, but the China Automobile Circulation Association pointed out that there is still no shortage of buyers for high-quality models and performance models. Specifically, the value preservation rate of all major levels of models is basically maintained at more than 60%, of which small cars, medium and large vehicles, medium and large SUV, MPV are more than 70%, medium and large SUV ranked first with 74.8%.

(source: China Automobile Circulation Association)

The automobile industry is concerned that there are many factors that affect the "preservation rate" of new cars, including vehicle pricing, terminal discounts, best-selling and so on, so the "preservation rate" is not the only criterion to measure whether a car is good or bad. Of course, to some extent, the "car preservation rate" also has a high reference value for consumers to choose and buy new cars, on the one hand, it can make consumers suffer less losses when buying cars, on the other hand, it reflects the market recognition of vehicles to a certain extent. Generally speaking, cars have high performance-to-price ratio and high value preservation rate.

From March to May this year, affected by the COVID-19 epidemic, supply chain disruptions and other major environmental impact, the car market as a whole fell into a depressed state. With the improvement of the epidemic situation, the domestic automobile industry chain supply chain has been in a stable state, and vehicle production has been fully restored, but due to the lack of coordination between the upstream and downstream of the industry, the lack of core and other problems still exist. In addition, since the end of May, the state and various provinces and cities have launched multi-level automobile consumption subsidy policies to stimulate automobile consumption. Cui Dongshu, secretary general of the Federation of passengers, said that cars are currently at the bottom of prices, and in order to ensure that the state's policies to promote consumption are effective, some mainstream car companies have recently added preferential activities, so sales in the car market have rebounded. Data show that retail sales of narrow passenger cars are expected to be 1.83 million in June, an increase of 15.5 percent over the same period last year and 35.2 percent month-on-month. The National standing Committee forecasts that after the implementation of the policy, automobile and related consumption will increase by about 200 billion yuan this year.

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