AutoBeta(AutoBeta.net)10/10 Report--

On October 9, the China Automobile Circulation Association released the "Research report on China's Automobile value retention rate in September 2023". The report shows that the car market rebounded significantly in September, and the replacement of new cars continued to lead the recovery of the used car market. Apart from policy factors, another reason for the growth is the superposition of the traditional peak season, but second-hand cars still need to be on guard against special conditions such as water-soaking cars.

In terms of breakdown, the value preservation rate of different models varies in September, among which small cars, medium and large cars, medium and large SUV and medium and large SUV all have varying degrees of increase, especially medium and large SUV. It rose to 69.4% from 66.6% in August, an increase of 2.8%, which also reflects the higher value of high-end products to users.

In contrast, compact cars, midsize cars, small SUV, compact SUV and MPV showed some declines, with compact SUV and MPV down 1.1 per cent compared with August. In addition, although the price of entry-level models is low, but the products face different people, second-hand prices are difficult to maintain, and small cars are expected to accelerate their withdrawal from the market, especially fuel vehicles, the report said.

Specific to the performance of the preservation rate of national brands, among the luxury brands, the preservation rates of 13 brands on the list in September, including Lexus, Mercedes-Benz, Audi, Cadillac, Tesla and Volvo, all rebounded. The list shows that there are five brands with a preservation rate of more than 60 per cent in three years in September, and BMW is the only brand in the BBA camp that has seen a decline in the preservation rate, which has fallen to 62.9 per cent from 63.8 per cent in August.

Overall, the three-year preservation rate of luxury brands remained generally stable in September, but the report points out that the withdrawal of some brands, such as Acura, has increased the concentration of the entire market, while some traditional luxury brands have been restructured because it is difficult to maintain premiums, but as consumer perception is not obvious for the time being, used cars still have temporary profit space.

In terms of joint venture brands, the top two are still Japanese brands Toyota and Honda, but the three-year preservation rate has declined, with Toyota down 1.0% from the previous month and Honda by 0.3% from the previous month. Mazda and Nissan, which ranked sixth and eighth, also fell, falling 0.3 per cent and 0.4 per cent respectively from the previous month, while Mitsubishi, which is also a Japanese brand, ranked 10th, down 0.7 per cent from August. In addition, the Volkswagen ranking of German brands also fell to seventh place from 4th in August, and the three-year preservation rate dropped from 59.8% to 58.9%, a decrease of 0.9%.

In contrast, the three-year preservation rate of Korean, American and legal brands, which were relatively weak in the past, rebounded significantly, of which Hyundai grew by 2.4% and Peugeot by 2.1%. "this reflects that traditional brands still have a high market cognitive basis and the circulation of used cars is relatively smooth," the report said. "

Let's take a look at independent brands. In September, the three-year preservation rate of independent brands generally declined. Among the 15 brands on the list, except for Lecker, Harvard, Geely and Chery, the preservation rates of the four brands remained the same as in August, while those of other brands all declined. Subdivided into major brands, Chuanqi is still at the top of the list, and its value preservation rate has remained first since it surpassed Wuling in January this year, but fell 0.3% month-on-month in September. Wuling, which ranked second, fell 0.1% from the previous month. Changan and ideal ranked fourth and fifth in the list, respectively, with the three-year preservation rate falling 0.2% and 0.1% month-on-month, respectively, and the preservation rate also dropped from 51.3% to 51.1%, which is also the last place on the list.

The report pointed out: "Independent brands in the price war 'hurt' more seriously, the problem of product homogenization still exists, price for quantity is still inevitable." The development of new energy vehicles is expected to change this situation, but the circulation scale of second-hand new energy vehicles is still small. "

As for the field of new energy vehicles, although the overall penetration of new energy vehicles has improved, due to the continued price war, the small scale of the new energy used car market and the low willingness of car owners to sell cars, the three-year preservation rate of used cars continued to decline in September. According to the power type, the value preservation rate of plug-in hybrid models is 53.6%, down 0.9% from 54.5% in August, while that of pure electric models is 53.5%, down 0.7% from 54.2% in August.

In the plug-in hybrid list, the top three plug-in hybrid models (three years old) are Porsche Panamera E-Hybrid, Porsche Cayenne E-Hybrid and range Rover plug-in hybrid. In the list of plug-in hybrid models (one-year age), the ideal L9 entered the list for the first time, ranking second on the list with a value preservation rate of 83.8% in September. In addition, a number of BYD models squeezed into the list TOP15, including Song Pro DM-i, Song PLUS DM-i, Tang DM-i, Han DM-i, Song MAX DM-i, destroyer 05.

In the list of pure electric models, the top three models with preservation rates (one year old) are Porsche Taycan, Tesla Model 3 and dolphins, with preservation rates of 78.9%, 78.6% and 77.7%, respectively. In addition to dolphins, BYD also has a number of models on the list of TOP15, including Yuan PLUS, Han EV and Song PLUS EV. Zero running T03, Hongguang MINIEV, Euler White Cat and Porsche Taycan4 models are in the top three on the list of pure electric models (three years old), respectively. Hongguang MINIEV and Euler White Cat tied for second place with a three-year preservation rate of 66.5%, while Zero running T03 and Porsche Taycan4 had three-year preservation rates of 67.8% and 65.7%, respectively.

The China Automobile Circulation Association pointed out in its report that although the supply of used cars increased month-on-month in September, it was slightly lower than the level in the same period last year. In the future, it is necessary to guard against the special conditions of used cars, such as water-soaked cars. In addition, product quality is still the focus of consumers' attention.

Finally, the automobile value preservation rate, as an important part of the performance-to-price ratio, has a high reference value for consumers to buy cars, but also reflects the market recognition of new cars to a certain extent. "Automotive Industry concern" believes that there are many factors that affect the value preservation rate of vehicles, including the number of cars in the market, product popularity and market terminal concessions are all potential influencing factors, therefore, car value preservation rate is not the only criterion to judge whether a vehicle is good or bad.

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