Electric Vehicle Market: Prices of Entry-Level Vehicles Decline While High-End Models Maintain Value Stability
On March 24, the China Automotive Technology and Research Center released the February 2025 China Automotive Value Retention Report (referred to as the Report). The Report indicates that in February, the number of used cars in the electric vehicle (EV) segment has increased compared to previous years, driven by rising demand for electric vehicles and supportive government policies.
Data shows that in February, the number of electric vehicles registered was approximately 623,800 units, a significant year-on-year increase. In comparison, the same period in 2024 recorded around 506,900 units. Additionally, the manufacturing sector released updates regarding the Light Vehicle Emission Standards and Measurement Methods (China Phase I), expressing intentions to implement stricter standards for light and heavy vehicles.
The China Automotive Technology and Research Center emphasized the importance of accurate data collection and analysis in their report, indicating that the value retention rate for entry-level electric vehicles is currently facing downward pressure. As per the Report, the value retention rates of various vehicle segments reveal that MPVs, mid-size cars, and mid-size SUVs have relatively high value retention rates of 59%, 55.8%, and 55.4%, respectively. In contrast, compact vehicles, small SUVs, and mid-size SUVs show lower value retention rates, generally below 51%, with compact cars dropping to 48.8%.
Considering the trends in the electric vehicle market, there is still considerable demand for high-end electric vehicles. Therefore, the value retention rates for mid-size SUVs have shown a slight upward trend in February. The Report indicates that the demand for entry-level electric vehicles is still robust, with some brands experiencing price reductions.
Currently, the first-tier brands maintain value retention rates of 57.3% and 56.3%, respectively, with slight fluctuations of 0.7% and 1.2% in February. It is noted that the value retention rates for some models from leading brands may continue to rise due to their strong market presence and brand loyalty.
In terms of performance, the report highlights that the market for electric vehicles is expected to remain stable, with a consistent supply chain supporting the demand for electric vehicles in the coming years. The report also notes that the price of new energy vehicles has maintained stability without significant fluctuations.
In February, the value retention rates of plug-in hybrid vehicles and pure electric vehicles were recorded at 47% and 45.2%, respectively. Among them, the plug-in hybrid vehicles showed stable value retention largely due to their high-end vehicle categories.
The China Automotive Technology and Research Center stated that the stability of new energy vehicles’ value retention rates has been consistently observed, indicating a healthy growth trajectory for the market. Furthermore, as the demand for electric vehicles continues to grow, the government has announced plans to support the electric vehicle sector through various initiatives.
In conclusion, the electric vehicle market is poised for further growth, with a focus on maintaining value retention rates while adapting to changing consumer preferences. The report provides insights into the current dynamics of the market and highlights the importance of sustaining momentum in the electric vehicle segment.
