Customers browse secondhand SUVs in a Beijing market in April. HU QINGMING/FOR CHINA DAILY
From January to May, China's used car sales reached 8.1 million units, up 2.3 percent year-on-year, with a total transaction value of 531.37 billion yuan ($73.2 billion), according to data from the China Automobile Dealers Association.
In the same period, retail sales of new passenger cars stood at 8.15 million units, dropping more than 20 percent from 2025.
Sales of secondhand NEVs jumped 25.7 percent to 685,400 units during the same period, becoming the engine of growth in the sector.
Cui Dongshu, secretary-general of the China Passenger Car Association, said that since January 2026, the halved purchase tax on NEVs has raised the cost of buying a new NEV, while used NEVs remain exempt, giving them a clear price advantage and boosting secondhand demand.
