In March 2025, a research report on the depreciation rates of automobiles in China was jointly released by the China Automobile Circulation Association and Jingzhen Estimate. The report indicates that the rise in used car prices is a favorable factor for the automotive market in the first half of the year. Dealers are advised to seize the opportunity and avoid issues related to declining circulation speeds.
This month, several categories of vehicles experienced a decline in value retention, each facing unique challenges. The compact sedan market is shrinking, mid-size SUVs have high unit prices, and small MPVs are confronting the impact of electrification, all of which negatively affect price stability. In the luxury segment, used vehicles, primarily fuel-powered, continue to be recognized for their brand value. As manufacturers adjust their sales targets for new cars, the pressure at the retail level has temporarily eased. Tesla’s advanced driver-assistance features are nearing implementation, which has led current owners to delay their selling plans. Following a decline in its value retention this month, Land Rover’s performance now aligns more closely with its long-term standing in the domestic market.
The depreciation rate data aims to shed light on the historical market environment, industry trends, corporate development, and the relationship with value retention. It also reflects the overall strength of a brand, including product quality, recognition, and reputation. The data presented here is derived from the sales prices of used cars in good condition (B2C). Below are the performance rankings:
The high-level release of the “Action Plan” to boost consumption underscores the importance of consumer spending as a vital component of economic activity and a solution for maintaining stability across various sectors. This plan not only includes the already implemented “trade-in” program but also introduces innovative measures aimed at addressing multiple pain points in the used car market. It proposes to nurture and expand the entities involved in used car sales, implement facilitation measures such as “reverse invoicing” and registration for cross-regional transactions, and enhance information sharing in the automotive sector to support the development of third-party platforms for used car information, promoting secure and convenient transactions.
As for the dynamics of vehicle supply, there has been a significant rebound in the availability of new cars, contributing to the activity in the used car market. The expansion of trade-in programs is stimulating demand, and springtime vehicle usage has seen a marked increase. Some regions have begun testing subsidies for used car transactions, although their current impact on the overall market is minimal.
Generally, depreciation rates across various vehicle categories have shown an upward trend. In the luxury segment, Tesla’s depreciation rate has improved significantly. Despite the predominance of fuel-powered vehicles in the luxury used car market, there remains a large audience that recognizes their brand value. The pressure at the retail level has eased as manufacturers adjust their new car sales targets, and Tesla’s advanced driver-assistance features have contributed to existing owners postponing their selling plans. After a decline, Land Rover’s depreciation rate now reflects its long-term performance in the domestic market more accurately.
In the mainstream overseas brands segment, the depreciation rates of joint venture brands have seen noticeable improvement. Initiated by Volkswagen and Buick, the “fixed price” strategy has been widely adopted by many brands, especially joint ventures, often in conjunction with new car updates. Used car pricing typically includes risk factors, and once a fixed price becomes a constant reference point, the pricing of used cars can be adjusted upwards. The depreciation rankings for American and Korean brands have shifted, notably influenced by recent international market conditions.
For domestic brands, a slight decline in depreciation rates has been observed, with GAC Trumpchi maintaining the top spot. Many domestic brands are leveraging the new energy sector to outpace their joint venture competitors, leading to accelerated sales and rankings.
In the popular depreciation rankings, the Cadillac CT5 stands out in the luxury mid-size segment due to its exceptional luxury features and strong performance, gaining considerable consumer favor. Competing against models like the BMW 3 Series, Mercedes-Benz C-Class, and Audi A4L, the CT5 ranks third in its category, with the C-Class and 3 Series taking the first and second spots.
In the 150,000 to 200,000 RMB range for domestic and pure electric mid-size vehicles, SAIC Roewe has addressed consumer concerns regarding the after-sales service of new energy vehicles and battery safety with its “zero self-combustion lifetime warranty” policy, which applies regardless of the first owner, time, or mileage. In the competitive new energy vehicle market, the Roewe D7 ranks first in its category due to its excellent cost-performance ratio, advanced technology, and comprehensive features.
In the joint venture large SUV segment, the only model that meets the “large space” and “large size” criteria is the SAIC Volkswagen Teramont. This feature has been widely recognized by most Teramont owners, alongside its precise handling and high configurations, contributing to its leading depreciation rate in its class.
As for new energy vehicles, the AITO Wenjie M9, a flagship SUV, has achieved impressive results, with cumulative deliveries exceeding 100,000 units after its launch. It ranks first in its category, thanks to its intelligent cockpit and Huawei’s advanced driving technology.
In the domestic plug-in hybrid MPV market, GAC Trumpchi continues to excel, leveraging its leading technology, proven reliability, and luxurious space to effectively meet both family and business travel needs. The Trumpchi E8 and E9 consistently occupy the top two spots in value retention within their segment.
Regarding the changes in the new energy vehicle market, the requirements for product access, recalls, and online software updates emphasize the need for corporate responsibilities. The regulatory focus has intensified on cases of driver assistance system failures or vehicle collisions. During the “315” event, the State Administration for Market Regulation released a “User Guide for Automotive Recalls,” providing consumers with guidance on protecting their rights.
In March, competition among hybrid vehicles intensified as the car market regained momentum. The price war has significantly affected hybrid vehicles, particularly with BYD announcing “standard configurations” for intelligent driving. The shortcomings of older used models are becoming increasingly evident, and the differences in features cannot be mitigated by simply having better vehicle condition. Hybrid models from luxury brands like Mercedes-Benz and BMW remain popular in the used market; however, as charging infrastructure improves and manufacturers transition from hybrids to developing fully electric vehicles, the value of older models is gradually declining.
In the rankings for major pure electric vehicles in March 2025, the top three are the AITO Wenjie M9, Li Auto MEGA, and Tesla Model X. This month saw several new models making it to the list, with domestic brands holding a significant share in the top 15 pure electric vehicle rankings.
The plug-in hybrid rankings for this month are led by the Tank 700 new energy model, with domestic brands continuing to show strong momentum. Over the past three years, domestic brands have dominated the market, demonstrating significant advantages as the penetration of new energy vehicles in China exceeds expectations.
