The year-on-year growth of China's second-hand car trade slowed in the first 11 months to 11.71 percent from the more than 20 percent seen at the beginning of 2012, making the full-year target of 5 million units impossible to achieve, industry insiders said.
However, Shen Rong, deputy secretary-general of the China Automobile Dealers Association, said that despite the lackluster figures in 2012, he believes that the second-hand vehicle market is set to boom in 2013.
"It's almost impossible for China to achieve its target of trading 5 million second-hand vehicles in 2012, as monthly sales have been stagnant since May," said Shen.
"The stagnant market, as well as the heavy price cuts dealers made to promote brand-new vehicles, caused a price war in the second-hand car market."
Backed by a surge in sales at the beginning of 2012, total second-hand vehicle sales in the first 11 months increased 11.71 percent to 4.31 million units, and trade revenue increased 28.71 percent from a year earlier to 232.47 billion yuan ($36.89 billion).
In November, 436,400 second-hand cars were traded in China, 11.51 percent more than in October. However, total trade revenue was down 4.17 percent from the previous month to 22.89 billion yuan.
"The downtrend of second-hand vehicle sales in the second half was similar to the one seen in the new-vehicle market, which is entering a restructuring period," said Shen.
Mainland, Taiwan airlines sign co-op contract
Great changes in Zhengzhou railway station
Wanda Group ventures onto the global stage
Sports car makers look to mainland market
Top Ten Economic Events in 2012
'Gold road' laid with gold bars