New Energy vs. Gasoline Cars: Average Age Gap Widens—1.8 Years vs. 8.2 Years

A report on the automotive aftermarket, jointly released on July 5 by the China Association of Automobile Manufacturers (CAAM) and a consulting firm, revealed that the average age of internal combustion engine (ICE) passenger vehicles in China is 8.2 years, compared to just 1.8 years for new energy vehicles (NEVs). The data shows that approximately 70% of ICE vehicle owners keep their cars for more than five years before replacing them, whereas 90% of NEV owners trade in their vehicles within one to three years of purchase. Since 2021, sales of NEVs in China have grown rapidly, significantly boosting their market penetration within five years. By 2025, retail sales of NEVs had exceeded 12.8 million units, with newly added vehicles accounting for nearly 30% of the total NEV fleet in use. In contrast, the ICE vehicle market has entered a stock-dominated phase, with vehicles aged seven years or older comprising nearly 60% of the ICE fleet. NEVs, characterized by their “consumer electronics-like” nature, feature core technologies—such as batteries, chips, and intelligent systems—that undergo rapid iteration cycles of just 18 to 24 months. As a result, older models often become incompatible with the latest software and features within a few years, leading to degraded user experiences and prompting earlier vehicle replacement. Additionally, NEVs suffer from low residual values and rapid depreciation, further reducing owners’ willingness to hold onto their vehicles long-term. Industry surveys indicate that 90% of NEV owners replace their vehicles within five years, with the typical replacement cycle concentrated between three and five years—significantly shorter than the six- to eight-year cycle common among ICE vehicle owners. Early-generation electric vehicles also face challenges such as rapid battery degradation and high maintenance costs, leading some owners to repurpose these vehicles for ride-hailing services or retire them entirely, thereby further reducing the proportion of long-term private ownership.