On April 1, the China Automobile Circulation Association and Jingzhen Estimate jointly released the March 2025 China Car Retention Rate Research Report. The report states that the rise in used car prices is a favorable factor for the automotive market in the first half of the year, urging car dealers to take advantage of the situation to avoid issues related to declining circulation speed.
This month, several types of vehicles experienced a decrease in retention rates, each facing unique challenges. Compact sedans are seeing a shrinking market, mid-size SUVs have high unit prices, and small MPVs are facing competition from electric alternatives, all of which negatively impact price stability. In the luxury segment, used cars predominantly consist of fuel vehicles, which still have a significant audience that appreciates their brand value. As manufacturers adjust their new car sales targets, the pressure at the retail level has temporarily eased. Tesla’s advanced driving assistance feature is nearing implementation, leading current owners to postpone their selling plans. After a decline this month, Land Rover’s retention rate aligns more closely with the brand’s long-term performance in the domestic market.
Using retention rate data, we can observe the relationships between past market environments, industry trends, corporate development, and overall brand strength, including product capability, recognition, and reputation. The retention rate data in this report is calculated based on the selling prices of used cars (B2C) in good condition.
Policy Direction: The release of the Special Action Plan to Boost Consumption indicates the importance of consumer spending as a key focus of economic work, aimed at maintaining stability across various sectors. The plan extends beyond the already implemented “trade-in” program and introduces innovative measures to address pain points in the used car market. The original document states: “Cultivate and strengthen the main operators in the used car sector, and continue to implement facilitation measures such as ‘reverse invoicing’ and intercity transaction registration.” It also emphasizes the need for enhanced information sharing in the automotive sector, supporting the development of third-party used car information query platforms to promote safe and convenient transactions.
Hot Events: The guidelines for scrapping old commercial vehicles have been issued jointly by the Ministry of Transport, National Development and Reform Commission, Ministry of Public Security, Ministry of Finance, and Ministry of Commerce. Commercial vehicles are a focus of the national “two new” policies, with the current fiscal subsidies being shared between central and local governments, resulting in an increased impact. Users and owners of old commercial vehicles are sensitive to pricing, and the expected effectiveness and elasticity of subsidies are promising. This update also promotes the adoption of new energy trucks.
Online Vehicle Supply Changes: The availability of vehicles has surged as new car sales flourish, contributing to the active used car market. The expansion of the trade-in program is stimulating consumer demand, especially with the seasonal increase in vehicle usage. Some regions are experimenting with subsidies for used car transactions, but their overall impact on the market remains minimal.
Retention Rates Across Different Categories: Generally, retention rates across various categories have improved. The retention rate for luxury brands has increased, with Tesla showing notable improvement. Despite a temporary easing of pressure on retailers due to adjustments in new car sales targets, luxury fuel vehicles still maintain significant brand value recognition. The retention rate for Land Rover has declined this month, aligning better with the brand’s long-term domestic market performance.
Mainstream Overseas Brands: The retention rates for joint venture brands have shown significant improvement, especially with the fixed-price sales model initiated by Volkswagen and Buick, which has been widely adopted by many brands, particularly joint ventures. The used car pricing often includes risk factors, and with fixed pricing becoming a standard reference, used car quotes can be adjusted upwards. The retention rankings for American and Korean brands have shifted, clearly influenced by recent international conditions.
Domestic Brand Retention Rates: Domestic brands have experienced a slight decline in retention rates, with GAC maintaining the top position. Many domestic brands are leveraging the new energy segment to gain a competitive edge, with sales and rankings surpassing their joint venture competitors, thus entering an accelerated growth phase.
Popular Retention Rate Rankings: In the joint venture luxury mid-size car category, the Cadillac CT5 stands out with its exceptional luxury features and strong performance, making it a favorite among consumers. The CT5’s main competitors include the BMW 3 Series, Mercedes-Benz C-Class, and Audi A4L, but its focus on pure driving experience places it third in its class, with the C-Class and 3 Series taking the top two spots.
In the mid-size electric vehicle category priced between 150,000 and 200,000 yuan, SAIC Roewe has launched a “lifetime warranty on three electrical systems” policy, addressing customer concerns about after-sales service and battery safety. This move has positioned the Roewe D7 as a leader in its class due to its excellent cost performance, advanced technology, and comprehensive features.
In the joint venture large SUV segment, the only model meeting the “large space” and “large size” criteria is the SAIC Volkswagen Teramont, which has garnered widespread recognition from its owners for its precise handling and high configuration, ensuring its top retention rate in its class.
In the new energy large SUV category, the AITO M9 has achieved over 100,000 deliveries since its launch, thanks to its intelligent cockpit and Huawei’s leading driving technology, ranking first in its segment.
Among domestic plug-in hybrid MPVs, GAC has excelled with its advanced hybrid technology, reliable quality, and luxurious space, perfectly balancing family travel and business needs. The GAC E8 and E9 hold the top two positions in retention rates in their class.
Market Changes for New Energy Vehicles: The management of product admission, recalls, and online software upgrades require companies to emphasize their responsibilities, ensuring upgraded products meet national standards. The failure of driving assistance systems or accidents has garnered regulatory attention. During the “315” period, the State Administration for Market Regulation released a “User Guide for Automotive Recalls,” guiding consumers to protect their rights.
In March, as the automotive market regained momentum, competition among new energy vehicles intensified, particularly for hybrid models affected significantly by price wars. With BYD announcing standard intelligent driving features, older second-hand models are at a disadvantage, as functional disparities cannot be compensated by merely being in good condition. Luxury hybrid models from brands like Mercedes and BMW remain popular in the second-hand market; however, as charging infrastructure improves, and manufacturers pivot from hybrids to focus on pure electric models, the value of older models is expected to decline.
The top three pure electric models in March 2025 are the AITO M9, Li Auto MEGA, and Tesla Model X, with numerous new models making it to the rankings, and domestic brands dominating over half of the top 15 list.
In the plug-in hybrid category, the Tank 700 new energy model leads the list, reflecting the strong momentum of domestic brands, which dominate the rankings. After three years, domestic brands maintain a robust presence, capturing a significant share of the market. The penetration rate of domestic new energy vehicles has exceeded expectations, giving domestic brands a considerable advantage.
