Used Car Sales Rise 2.3% YoY in Jan-May; New-to-Used Vehicle Sales Ratio Hits 1:1 for First Time

From January to May 2026, China’s used car transactions reached 8.095 million units, up 2.3% year-on-year. During the same period, the ratio of new vehicle sales to used car transactions hit parity for the first time, reaching 1:1. Against a backdrop of generally weak new car consumption, the used car market has demonstrated strong resilience, effectively supporting the overall automotive consumption landscape. On July 10, 2026, the China Used Car Conference was held in Wuxi, Jiangsu Province, under the theme “Reconstruct · Renew.” This marked the first time the industry event took place in a city at the intersection of the Yangtze River Economic Belt and the Yangtze River Delta Integration Strategy, drawing thousands of industry professionals nationwide to discuss industry transformation and new growth opportunities. In the run-up to the conference, a series of policy measures were rolled out in quick succession, including a new round of subsidies for trade-in programs, the launch of initiatives promoting new energy vehicles (NEVs) in rural areas, measures to foster post-sale automotive market consumption, and the announcement of pilot cities for circulation and consumption reform. The State Council Information Office recently emphasized the need to facilitate efficient and vibrant used car circulation. Xiao Zhengsan, President of the China Automobile Dealers Association, stated at the conference that the scale of used car transactions continues to expand, accompanied by a corresponding rise in industrial value. He highlighted eight key shifts currently shaping the industry: tighter integration between new and used car businesses; continuous打通 of domestic and international circulation channels; accelerated changes in the age structure of the existing vehicle fleet; rapid growth in specialized business segments; rising levels of consolidation and efficiency; deeper integration of online and offline operations; proactive adjustments by traditional used car markets; and steady progress in rebuilding service systems and consumer trust. Addressing the current state of industry development, Xiao proposed four recommendations for enterprises: uphold integrity as the foundation of business operations; accelerate the pace of business transformation; actively explore emerging sectors; and jointly maintain a fair competitive environment. He added that the association will continue to serve as an industry platform and a bridge between government and enterprises, strengthening service support, improving institutional frameworks, and collaborating with government authorities to advance industry governance—thereby supporting the healthy development of the used car market amid structural adjustments.