The Chinese automobile market has been significant for some time given the country’s huge population and rapidly expanding middle class. China has been the world’s largest auto market by sales since 2010, with the lead extending since then.

The sales boom for new automobiles has in turn fostered a domestic used car market, which has in fact outpaced growth in sales of new cars since 2012. The trading volume of used cars increased 12.77% year-on-year to 2.82 million in the first half of 2014, with the figure expected to reach around 6 million in 2014 and around 10 million in the next two years, according to data from the China Automobile Dealers Association.

Chinese began buying new cars in huge numbers in 2009, when more than 13.6 million new cars were sold – a 48% increase from the previous year. Five years later, these cars are reaching the end of the average 5-plus year life cycle, so more car owners are planning to trade in their vehicle. Secondhand cars were formerly a hard sell in China, while car owners have to settle for much less, and there being a stigma to used cars. But the secondhand market is becoming increasingly popular as drivers find they can get a decent car at a reasonable price.

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Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.