Secondhand ICE Vehicle Prices Plunge Amid New Energy Transition

Amid the rapid growth of new energy vehicles (NEVs), the traditional internal combustion engine (ICE) vehicle market continues to face mounting pressure, prompting a significant restructuring of the pricing system for used ICE vehicles. In 2024, used ICE cars have seen widespread price declines, with some luxury models selling notably below expectations. At Beijing’s Huaxiang Used Car Market, well-maintained second-hand BMWs and Audis can be purchased for just tens of thousands of yuan, used Porsches are available for around 100,000 yuan, and pre-owned Maseratis can be acquired for approximately 200,000 yuan. According to data from the China Automobile Dealers Association, retail sales of ICE passenger vehicles in the first half of 2024 fell by 26.4% year-on-year, and their share of the new car market dropped to 37.2% in June. Weak demand in the new car market has rippled through trade-in channels into the used car segment, further exacerbated by intense price competition among new ICE vehicles, collectively driving down prices across the used ICE vehicle market. Industry experts view this adjustment as a structural shift inherent in the automotive industry’s transition toward electrification. Nevertheless, given the vast existing stock of used ICE vehicles in China—and supported by steady domestic demand for daily commuting as well as robust export demand—the used ICE vehicle market is expected to maintain stable demand and retain room for development over the coming period.