China's Used Car Market Sees Significant Recovery in March 2026

In March 2026, China's used car market experienced a notable rebound, driven by pent-up demand following the Lunar New Year holiday. According to data from the China Automobile Dealers Association, transactions surged to 1.79 million units, marking a 37.73% increase from February and a 2.11% rise year-on-year. The total transaction value reached 117.87 billion yuan. Cumulatively, from January to March, used car transactions totaled 4.822 million units, reflecting a 4.66% year-on-year increase.

Used Car Market, Recovery Accelerates

Performance varied significantly across vehicle segments in March. While sedans, traditionally a market staple, saw 968,400 units sold (up 38% month-over-month but down 3.45% annually), multi-purpose vehicles (MPVs) emerged as the standout category, with 127,300 units sold, representing a 38.49% monthly surge and a 12.06% annual gain. Commercial vehicles also showed strong growth, with bus transactions reaching 107,200 units (up 36% monthly) and truck sales climbing to 153,500 units (up 38.1% monthly).

Used Car Market, Recovery Accelerates

The first quarter's cumulative data indicated that MPVs and commercial vehicles were the primary drivers of growth, reflecting a shift in consumer preferences towards functionality and space. This trend is attributed to the increasing number of two- and three-child families and the rising demand for vehicles suitable for weekend travel.

Used Car Market, Recovery Accelerates

The recovery was widespread, with all six major regions in China reporting increased transaction volumes in March. The Central-South region led with 502,300 units sold, while the East region recorded the fastest growth at 43.76%, with Shanghai's volume doubling. The North region also saw significant gains, with a 46.73% monthly increase. Overall, March's performance indicated a coordinated recovery across regions, supported by aggressive post-holiday marketing efforts by dealers.

Used Car Market, Recovery Accelerates

Cross-regional trade accelerated as well, with the used car transfer rate climbing to 32.08%, an increase of 1.41 percentage points month-over-month. This rise in transfer rates suggests improved resource allocation efficiency within the national market, facilitating smoother circulation of nearly-new vehicles from urban to rural areas.

Used Car Market, Recovery Accelerates

A notable trend in consumer preferences was the increasing favorability towards nearly-new vehicles, which accounted for 29.88% of transactions in March, up 2.29 percentage points year-on-year. Vehicles aged 3 to 6 years dominated the market, making up 43.13% of transactions. This shift is linked to trade-in policy incentives that have improved the quality of inventory available to consumers.

Used Car Market, Recovery Accelerates

March 2026 marked a significant turning point for China's used car market, characterized by a broad-based recovery across segments and regions. As local consumption policies take effect and consumer acceptance of used cars continues to rise, the market is positioned to maintain its upward momentum into the second quarter. The strong performance in March sets a positive tone for future growth, with MPVs and commercial vehicles leading the way.

Used Car Market, Recovery Accelerates

• “As the nation's economic engine, the East's volume and growth rate serve as a bellwether — and March's performance only solidified its leading position.” — China Automobile Dealers Association

Used Car Market, Recovery Accelerates