On April 1st, the China Automobile Circulation Association and Jingzhen Estimation jointly released the March 2025 China Automobile Depreciation Rate Research Report. The report highlights that the rebound in used car prices is a favorable factor for the car market in the first half of the year, and dealerships should leverage this trend to prevent a slowdown in circulation.
This month, several types of vehicles have seen a decline in their depreciation rates due to various challenges. Compact sedans are experiencing a reduced market size, while mid-size SUVs are facing high unit prices. Additionally, small MPVs are at risk of depreciation as they encounter competition from electric alternatives, which hampers price stability. In contrast, luxury brand used cars, primarily fueled by gasoline, continue to attract a significant audience that values brand reputation.
As manufacturers adjust their new car sales targets, the immediate pressure on the market has eased. Tesla’s advanced driver-assistance features are nearing implementation, which has led current owners to postpone their selling plans. After a decline this month, Land Rover’s depreciation rate aligns more closely with its long-term performance in the domestic market.
By analyzing depreciation data, we can gain insights into past market conditions, industry trends, corporate developments, and the relationship between depreciation rates. On a micro level, these figures also reflect the comprehensive strength of a brand in terms of product quality, recognition, and reputation. The depreciation rate data presented here is calculated based on the sales prices of used cars (B2C) in good condition.
Policy Directions
The release of the Consumption Promotion Action Plan at a high governmental level underscores the significance of consumption as a vital component of economic work and a means to maintain stability across various sectors. In addition to the existing “trade-in” initiatives, the plan introduces innovative strategies aimed at addressing multiple pain points in the used car market. This includes fostering the growth of used car businesses and implementing facilitation measures for sales, such as “reverse invoicing” and registration for cross-regional transactions. Enhancing information sharing in the automotive sector and supporting the development of third-party used car information platforms will further facilitate trustworthy and convenient transactions.
Current Events
The Ministry of Transport, along with several other governmental departments, has jointly announced guidelines for phasing out old operational trucks. This initiative is part of the national focus on “new and improved” policies for commercial vehicles, with financial subsidies being shared between central and local governments, thereby increasing support. Users and owners of old operational trucks are sensitive to pricing, and the anticipated effects of the subsidies are expected to be positive. This update will also aid in promoting new energy trucks.
Online Vehicle Supply has seen a significant rebound, with robust new car sales contributing to an active used car market. The expansion of trade-in programs is stimulating consumer demand, particularly as spring approaches, leading to a noticeable increase in vehicle usage. While some regions are experimenting with subsidies for used car transactions, their overall impact on the market remains minimal.
Depreciation Rates Across Vehicle Categories
Depreciation rates across various vehicle categories have generally rebounded. For luxury brands, the depreciation rate of Tesla has improved. Used luxury vehicles, predominantly fueled by gasoline, continue to hold significant brand value among consumers. As new car sales targets are adjusted, the immediate pressures on the market have lessened. Tesla’s upcoming driver-assistance features have led current owners to delay selling their vehicles. Following a decline this month, Land Rover’s depreciation rate more accurately reflects its long-term standing in the domestic market.
For mainstream foreign brands, the depreciation rates of joint venture brands have notably improved. Initiatives like the “fixed price” strategy introduced by Volkswagen and Buick have been widely adopted by many brands, particularly joint ventures, often in conjunction with new model releases. The pricing of used cars typically incorporates risk factors, and as fixed pricing becomes a stable reference, used car prices can be adjusted upwards.
Depreciation rankings for U.S. and Korean brands have fluctuated, significantly impacted by recent international developments. In terms of domestic brands, there has been a slight downward trend in depreciation rates, with GAC Trumpchi maintaining its position at the top. Many domestic brands have successfully leveraged the new energy sector to surpass their joint venture competitors, initiating a phase of accelerated growth.
Top Depreciation Rankings
In the luxury mid-size car market, the Cadillac CT5 stands out due to its exceptional luxury features and powerful performance, making it a favorite among consumers. It competes primarily with the BMW 3 Series, Mercedes-Benz C-Class, and Audi A4L, but based on its emphasis on sporty characteristics, the CT5 ranks third, with the C-Class and 3 Series taking the first and second spots, respectively.
In the domestic pure electric mid-size car segment, SAIC Roewe has addressed consumer concerns regarding after-sales service and battery safety by launching a comprehensive warranty policy. The Roewe D7 has emerged as the top contender in a competitive new energy vehicle market, thanks to its excellent price-to-performance ratio and advanced technology.
Among foreign mid-size SUVs, only the SAIC Volkswagen Teramont meets the criteria for “large space” and “large size,” attributes that many Teramont owners appreciate. The vehicle’s precision handling and high configurations are additional strengths. Volkswagen’s established reputation further ensures that the Teramont maintains strong depreciation rates, ranking first in its category.
In the new energy large SUV segment, the flagship Hongmeng Zhixing has achieved remarkable sales of over 100,000 units since its launch, thanks to its intelligent cockpit and advanced technology.
In the domain of domestic plug-in hybrid MPVs, GAC Trumpchi continues to lead, offering a perfect balance between family travel and business needs through its advanced hybrid technology and luxurious features.
Market Conditions for New Energy Vehicles are evolving, with management of product access, recalls, and online software upgrades becoming increasingly important. In light of potential failures in driver assistance systems or collision incidents, regulatory attention has heightened. During the “315” period, the State Administration for Market Regulation issued a Guide for Automotive Recall Users, providing consumers with insights on protecting their rights.
As competition intensifies in the new energy vehicle market, particularly for hybrid vehicles, the impact of price wars is becoming more pronounced. Models from luxury brands like Mercedes-Benz and BMW are popular in the used market, but the shift towards pure electric vehicles by manufacturers is gradually diminishing the value of older models.
Key Depreciation Rankings for March 2025
In the pure electric vehicle category, the top three models for March are Wenjie M9, Li Xiang MEGA, and Model X, with a large representation of domestic brands in the top 15 listings. For plug-in hybrid vehicles, the Tank 700 leads the rankings, and domestic brands continue to show strong momentum, capturing a significant share of the market.
The penetration rate of new energy vehicles in China has exceeded expectations, with domestic brands maintaining a considerable advantage.
