In February 2022, the China Automobile Dealers Association and Jingzhen Estimation jointly released the "January 2022 China Automobile Retention Rate Research Report". Through the retention rate research, it aims to reflect the comprehensive strength of the brand's product strength, recognition, reputation, etc., and provide important data references for future repurchase, replacement, leasing, finance, new car pricing reference and other related businesses, thereby reducing business risks and improving operational efficiency.
Policy direction
Used cars are a key area of "green consumption"
In addition to second-hand cars, the "Plan" also proposes a number of contents in terms of new car consumption, mainly for new energy vehicles, including: gradually canceling the purchase restrictions of new energy vehicles in various places, promoting the implementation of support policies such as free travel restrictions and right of way, and strengthening the construction of supporting infrastructure such as charging and replacing, new energy storage, and hydrogenation.
The document also mentions a series of green consumption solutions such as "new energy vehicle power exchange mode", "new energy vehicles going to the countryside", and "reasonable guidance for consumers to buy lightweight, miniaturized and low-emission passenger cars".
Hot events
Comprehensive application of automobile maintenance data
"Comprehensive application of automobile maintenance data" This is the official formulation of the policy, and in practice, we have been using maintenance information to assist in the pricing of used cars. The official document proposed this time makes the "compliance" of maintenance information inquiry further.
Vehicle volume contracted seasonally
The Spring Festival holiday is slightly earlier than in previous years, and January has entered the holiday, which is one of the factors affecting the amount of vehicles. Due to the higher base of the same period last year, the number of vehicles in January also declined year-on-year. Another factor is the New Year's market, the age of the car needs to be re-evaluated, the age of the car only recognizes the "year" and does not recognize the "month" is the industry practice, which will also lead to the suspension of second-hand car trading.
Used car prices reached a new high
With the extension of the delivery cycle of the new car market, the trend of second-hand car price increases is still continuing. In the same car series, the price of second-hand cars has a lot to do with the annual model, so consumers can also indirectly judge the age of the car from the configuration and annual differences of the vehicle. After 2022, although the age of the vehicle increases by one year, the configuration of the vehicle corresponding to the annual model is still an important factor affecting the price. Rising used car prices aren't necessarily good news. Judging from the amount of vehicles in this month, the decline in vehicle sources may also be related to prices. Whether there is a causal relationship or not, it is not yet possible to draw conclusions.
The retention rate of luxury brands has temporarily declined
The high price of luxury brands of bicycles, the greater risk for car dealers, and the higher cost of capital are the reasons for the rush to sell at the end of the year. In the long run, the retention rate will not continue to decline. Jaguar Land Rover and American brands Cadillac and Lincoln are not weak in product strength, and it is necessary to recognize the brand positioning, reasonably adjust the new car plan, and the overall brand retention rate will also increase.
Hyundai and Kia retention rates rose
The competition of joint venture brands in the domestic market is very "fierce" and "sufficient", which makes the advantages of the leader easily "diluted". Even brands such as Hyundai and Ford, which are temporarily lagging behind, have the opportunity to change the status quo with a "blockbuster" product, thereby driving the improvement of brand value. Since 2022, Korean brands and American brands have shown an upward trend.
The retention rate of European and American brands has risen
The gap in the retention rate between joint venture brands has gradually flattened, and the disadvantages of European and American brands compared with Japan have not continued to expand, but have gradually approached, which is a good phenomenon of full competition in the market.
The overall decline of independent brands
In 2021, the electrification transformation of independent brands is ahead of overseas brands, and the brand volume of roewe, BYD, Weilai and other major new energy vehicles is significantly higher, and the ranking of retention rate is also on the rise. SAIC Roewe has formed a regional advantage with a large number of ownership, and the retention rate is higher than THAT.
Electric vehicle charging guarantee capability
By the end of 2021, the scale of charging facilities nationwide will reach 2.617 million units, 1298 substations, and nearly 8 million new energy vehicles, providing strong support for the development of the mainland new energy automobile industry. In this context, in order to implement the State Council's "New Energy Vehicle Industry Development Plan (2021-2035)", the bottleneck of charging infrastructure must be broken. The content of the "Implementation Opinions" involves many aspects such as residential communities, urban and rural areas, vehicle network interaction, and supporting power grids.
The retention rate of new energy vehicles has increased significantly
In the subsidy standards for new energy vehicles, technical indicators are also stipulated. The battery energy density, energy consumption level, mileage and other indicators of used cars are currently close to the performance of new cars, which is the result of the stability of industry standards. In addition, new energy used cars are currently generally shorter in age, within three years, so the performance is closer to that of new cars.
Changes in the ranking of retention rates of major models