AutoBeta(AutoBeta.net)04/05 Report--

On April 1, the China Automobile Circulation Association released the Research report on China's Automobile value retention rate in March 2024. The report includes the ranking of national brands, national models, all levels of models and the preservation rate of new energy vehicles. Let's take a look at the changes in the preservation rate of cars in China in March 2023.

In terms of subdivision, most of the preservation rates of all levels declined to varying degrees in March, with obvious declines in medium and large SUV and medium-sized cars, with the preservation rate of three-year-old cars falling 1.9 per cent and 1.6 per cent respectively compared with February. Although the preservation rate of medium and large SUV has declined considerably, the market segment of the car is relatively small and has little impact on the market as a whole. The preservation rates of compact SUV and MPV both rose in March, up 0.2 per cent and 0.1 per cent, respectively. From the overall performance of the preservation rate of all levels of models, SUV has a smaller decline in the preservation rate because of its stronger functionality, and the preservation rate of cars dropped sharply in March.

In terms of the value preservation rate of national brands, among the luxury brands, the top five car companies are Porsche, Mercedes-Benz, Lexus, BMW and Audi. Among them, Audi is the only car company that has seen a decline, with the preservation rate falling to 59.7% from 59.9% in February. Porsche's value preservation rate is as high as 77.4%, up 1.5% from February, while Mercedes-Benz and BMW are up 1.5% and 0.9% respectively. Lexus ranked third, and the preservation rate remained the same as in February, at 67.5%. In addition, second-tier luxury brands such as Cadillac, Jaguar and Infiniti also grew from February. In contrast, the preservation rates of Land Rover, Lincoln, Tesla, Volvo and Acura all showed varying degrees of decline, of which Land Rover fell 2.5% and Tesla fell 1.2%.

In terms of joint venture brands, the top two are still Japanese brands Honda and Toyota, with a three-year preservation rate of more than 60%, of which Toyota's preservation rate rose 0.4% month-on-month compared with February. Honda fell 0.4% from February, in addition, including Nissan and Mazda Japanese brands also showed a month-on-month decline. Mitsubishi, on the other hand, rose 0.8% from February. It should be noted that Mitsubishi Motors announced its dissolution and delisting in October 2023.

The report points out that the overall preservation rate of joint venture brands is weak this month, with the prices of most brands falling, due to the overall price reduction in the domestic car market, resulting in the depreciation pressure on joint venture brands with a large share of cars, and the preservation rate also shows a downward trend. It is worth mentioning that in March, the preservation rate of American cars exceeded that of Volkswagen, while the French Peugeot and Citroen brands rebounded slightly, of which Peugeot's three-year preservation rate rose to 53.3% from 52.3% in February, and Citroen rose from 48.6% to 49.9%.

Let's take a look at independent brands. In March, the three-year preservation rate of independent brands continued to decline collectively, but Chuanqi, Changan, Geely and other car companies, with their popularity and product strength, still maintained a high preservation rate in the context of the price war.

Specifically, Chuanqi is still at the top of the list, and its value preservation rate has remained first since it surpassed Wuling in January 2023, with a value preservation rate of 64.8% in March, the only car company on the list that exceeds 60%, but down 1.5% from February. The value preservation rate of Leike surpassed Wuling in March, with the preservation rates of 59.2% and 58.7% respectively, of which Wuling's value preservation rate decreased by 1.3% compared with February.

Except for the top three car companies, the hedging rates of Changan, Harvard, Geely, Mingjue, Roewe, BYD, Chery, ideal, Auchan, Baojun, Red Flag and Pentium all increased to varying degrees month-on-month. Among them, the preservation rate of Oshang fell 1.8% to 53.8% compared with February, and that of Pentium dropped 3.2% to 43.7% compared with February.

Finally, let's take a look at the field of new energy vehicles. Although the overall permeability of domestic new energy vehicles is gradually increasing, due to the decline in the cost of power batteries and the impact of the new car price war, new energy used cars are temporarily unsalable. According to the power type, the value preservation rate of plug-in hybrid models in three years is 53.8%, down 1.5% from 55.3% in February, while that of pure electric models is 52.5%, down 2.3% from 54.8% in February.

In the list of pure electric vehicles, the top three in the one-year preservation rate of pure electric vehicles are Porsche Taycan, ZEEKR 009 and Tesla Model 3, respectively. In the plug-in hybrid list, BYD's plug-in hybrid models rank in the list top15, while the top three plug-in hybrid models are Panamera E-Hybrid, Cayenne E-Hybrid and Tencent D9, respectively. Ideal L9 and ideal L8 are also in the top five.

Automobile value preservation rate is an important part of the performance-to-price ratio of cars, which 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.

According to the China Automobile Circulation Association, from January to February 2024, the cumulative transaction volume of used cars nationwide was 2.89 million, an increase of 6.76 percent over the same period last year, an increase of 183000 compared with the same period, with a cumulative transaction value of 195.925 billion yuan. It is worth mentioning that in the past, the devaluation of used cars was mostly due to the rapid technological iteration, but now it is more affected by the price war and favorable policies. before that, a number of car companies have launched the replacement subsidy policy of "trade-in". In order to stimulate consumers to buy cars, but this action also further squeezed the price of second-hand cars, causing some pressure on second-hand car operators.

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