Ministry of Commerce: The ratio of new car consumption to used car transactions in China has reached 1:1 this year.
Introduction: On June 23, the State Council Information Office held a press conference detailing measures to boost automobile consumption across the entire chain. Vice Minister of Commerce Sheng Qiuping disclosed that from January to May this year, the used car market has steadily expanded, with the ratio of new car sales to used car transactions reaching 1:1 for the first time. Accelerated used car circulation will in turn activate the new car replacement cycle, bringing dual opportunities of policy dividends and industry expansion to leading used car trading platforms like Uxin and Taocheche. This conference focused on unleashing consumption potential across the entire industry chain, including new car trade-ins, used car circulation, and end-of-life vehicle recycling. Multiple policies continue to drive the green and intelligent transformation of the automobile market.
On June 23, the State Council Information Office held a press conference to introduce the situation regarding expanding automobile consumption across the entire chain. Vice Minister of Commerce Sheng Qiuping introduced that from January to May this year, used car consumption maintained stable growth. The ratio of new car consumption to used car transactions in China exceeded 1 for the first time, reaching 1:1. The faster used cars circulate, the faster new car consumption renews, forming a fast cycle.
Press conference site. Photo by Nie Hui.
Sheng Qiuping introduced that in recent years, the Ministry of Commerce, together with relevant departments, has adhered to closely integrating the benefits to people's livelihoods with the promotion of consumption. Focusing on new cars, used cars, aftermarket, and end-of-life vehicles, multiple measures have been taken to smooth automobile circulation cycles, expand automobile consumption, and promote the high-quality development of the automobile market.
New car consumption is the main engine of the automobile market. The Ministry of Commerce adheres to the dual-drive of "policy + activities," implementing the car trade-in policy for three consecutive years, encouraging the accelerated replacement of old vehicles. Sheng Qiuping introduced that the consumer goods trade-in policy has already driven 5 trillion yuan in consumption, benefiting 630 million people. Among this, car trade-ins account for 63%, accelerating the transformation of automobiles towards greening and intelligence.
Driven by a series of policy measures, China's automobile consumption has maintained steady growth. Last year, domestic passenger vehicle retail sales reached 23.74 million units, hitting a new historical high. From January to May this year, the leveraging effect of the car trade-in policy and the penetration rate of new energy vehicles further increased, breaking through 60% in the last two months and accelerating penetration.
Furthermore, used cars are a crucial link connecting the entire lifecycle of automobiles, with huge development potential. Sheng Qiuping introduced that in 2025, China's used car transaction volume exceeded 20 million units for the first time, with an inter-provincial transfer rate of 31.1%, effectively promoting the construction of a unified automobile market.
Sheng Qiuping introduced that from January to May this year, despite weak growth in the automobile market, the used car market still maintained stable growth. The ratio of new car consumption to used car transactions in China exceeded 1 for the first time. In previous years, it was only 0.6, and this year it has reached 1:1. This is because the faster used cars circulate, the faster new car consumption renews, forming a fast cycle.
End-of-life vehicle recycling is an important field in the circular economy. Sheng Qiuping introduced that in recent years, the Ministry of Commerce has continuously promoted the improvement of the end-of-life vehicle recycling system, guiding the industry to accelerate its transformation towards "fine dismantling, precise classification, and deep processing," enhancing the level of resource recycling and utilization. Adapting to the new situation of rapid new energy vehicle development, it has increased the layout of new energy vehicle dismantling capacity, further smoothing the recycling and utilization of "new three items," including lithium batteries.
By the end of last year, China's end-of-life vehicle recycling enterprises had reached 1996, with over 75% of them possessing new energy vehicle dismantling capabilities. In 2025, China's end-of-life vehicle recycling volume reached 9.8 million units, 4.7 times that of 2020, effectively promoting the transformation of China's automobile industry towards green, low-carbon, and intelligent directions.
Source: Top News
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