In the face of complex and severe situations such as repeated epidemics, tight chip supply, and rising raw material prices, China's auto market has gone through an extraordinary year in 2021. However, in the face of many challenges and risks, the second-hand car market has maintained rapid development and has become a new bright spot in the automobile market. In 2022, the automobile market has entered the peak period of increase and exchange, and how to build a unified standardized market system in the second-hand car market and release the consumption potential of second-hand cars has become an important issue facing the entire automobile market.
Ushered in the peak of additional purchases
In 2021, the transaction volume of used cars reached 17.5851 million units, an increase of 22.62% year-on-year. The beginning of 2022 continued this rapid growth trend, with the used car trading volume in January reaching 1.4846 million units, an increase of 3.71% year-on-year, and the second-hand car market trading volume in February was 1.0768 million units, an increase of 27.32% year-on-year.
The background of the high growth rate of second-hand car trading volume is that China's automobile market has entered the stock market cycle. According to the latest data from the Ministry of Public Security, the number of domestic cars has reached 302 million, becoming the world's largest car stock market. Shen Jinjun, president of the China Automobile Dealers Association, once said that about 10% of the domestic car ownership has entered the replacement period, referring to the proportion of the second-hand car and new car trading volume in the United States is 2.35 times, and the domestic second-hand car trading volume has huge room for growth.
In recent years, the proportion of increased purchases in the automobile market also indicates that the peak of increased purchases has arrived. In 2016, the proportion of first purchases in the automobile market still exceeded 60%, and the current proportion of additional purchases has accounted for half of the country. Anxin Securities' analysis believes that the exchange rate in 2022 will reach 45.98%, and after 2022, the exchange users will become the main force of car purchases. As the automobile market enters the peak period of increase and exchange, the second-hand car market will also usher in a huge stock of energy storage.
Build a standardization system
How to release the huge energy storage of the second-hand car market is a challenge facing the automotive industry. At the policy level, the abolition of relocation restrictions, the electronic transfer of foreign nationality, the reduction of sales value-added tax... A series of favorable policies have made the circulation of used cars smoother. Policy promotion and market dividends have also allowed more OEMs and dealer groups to be optimistic about the second-hand car market and accelerate the layout. However, the blockages and pain points of the second-hand car market still exist, and problems such as opaque information, uneven levels, lack of after-sales capabilities, and long circulation cycles still plague the second-hand car industry.
Through digital upgrading, building a unified standardization system for the national second-hand car market is an inevitable option to solve these pain points. Shen Jinjun pointed out that the digital transformation of the automobile circulation industry is entering the "deep water area", and it will be crucial to the sustainable development of the automobile industry and market to drive new models, spawn new formats and create new profits with new technologies.
Yao Junhong, founder of the automotive industry Internet platform Dasouche, said: "Over the years, we have always adhered to building an automotive industry Internet platform through three steps of digitalization, collaboration and intelligence, driving the digital transformation of the entire industry, building an efficient collaboration network, and promoting the process of digital civilization in the automotive industry." Dasouche also won the "Outstanding Member Award for Digital Transformation of automobile circulation industry" issued by the China Automobile Dealers Association for its contributions to promoting the digital transformation of the automobile industry.
Digital ecosystem empowerment
The industrial Internet has become a new type of infrastructure in the automotive industry, through the digitization and onlineization of the entire industrial chain, it can integrate the resources and capabilities of all parties in the industrial chain, build a new industrial ecosystem, and promote industrial cost reduction and efficiency. In recent years, Dasouche has built a comprehensive second-hand car ecosystem, promoted the digitization of the second-hand car industry chain and empowered dealer groups and second-hand car dealers to improve quality and efficiency.
In the second-hand car ecosystem built by Dasouche, it can realize the digitization of all aspects of the industrial chain. At the source end, the "Super 4S Used Car" system launched by Dasou Car can digitize the used car source of the dealer group, while the "Big Windmill" and "Che Niu" can digitize the car source of the second-hand car dealer channel. For the car condition, 268V, the professional testing brand of used cars under DasouChe, has created a precedent for used car testing in China, which can digitize and online the used car condition information. On the transaction side, Dasouche links buyers and sellers through Cheyipai and Cheniu, thus realizing the online and efficient transaction of used cars. At the post-transaction vehicle service, Dasouche can provide digital full-process warehousing and logistics delivery services for second-hand car transactions through the truck steward.
Dealer groups and used car dealers are the main body in the circulation of used cars, and Dasouche also uses digitalization to fully empower them. In the operational dimension, Super 4S used cars and big windmills can build a digital business management system for dealer groups and car dealers. In the transaction dimension, 268V detection can ensure the transparency of vehicle conditions and promote the efficient circulation of vehicle sources, while the Dasou car trading engine can use big data to build a portrait of buyers and sellers, intelligently recommend according to actual needs, and then promote efficient transactions. In addition, the used car ecology of Dasou car also links 4S stores, used car dealers and institutional car sources, as well as financial institutions, insurance institutions and aftermarket service agencies, which can realize the comprehensive empowerment of car sources, finance, insurance and car services, and improve the cost reduction and efficiency improvement capabilities of dealers and car dealers.
The digital empowerment of the second-hand car industry is not only related to the revitalization of stock and the increase of increments, but also related to the overall situation of domestic consumption. Therefore, the Ministry of Commerce once again stressed at the beginning of this year that it is necessary to deepen the reform of the automobile circulation field, accelerate the transformation of automobiles from purchase management to use management, and expand the circulation of second-hand cars. For this year's second-hand car market, digital upgrading will enter a tough period, creating a solid and reliable digital high-speed channel for industrial development under the background of increasing the peak of purchases.
Text/Cantonese