Country III Used Car Cross-Region Transactions or Closed Beijing IV Cars Relocated

In July, major new cities in China will implement more rigorous environmental policies for second-hand cars, and are urging Beijing owners who change their cars to compete to catch up to this “last train”.

“Each province has introduced a policy to restrict the use of used cars. From July onwards, used car dealers in these cities will no longer be able to get in from Beijing. Therefore, everybody rushes to collect used cars before this policy. It is the final stage of the transaction. After July, the use of the State III standard used car would be almost impossible." A sales director of Beijing Zhuojie Line Motor Vehicle Co., Ltd., a second-hand car dealer, told the Daily Economic News reporter.

"According to the provisions of the provincial capital city vehicle management office, after July 1st, used cars that are discharged below the country III will no longer apply for relocation procedures." Luo Lei, deputy secretary-general of the China Automobile Dealers Association, told the "Daily Economic News" According to preliminary statistics, there are more than 20 cities in the country that no longer relocate to China IV emission models.

“The standards for implementing country III emissions in Beijing were in 2006, and the time for the implementation of country III standards in other provinces and cities was in 2008. Therefore, the vehicles before 2008 were mainly restricted to relocate to other places,” said Zhuo Jiexing’s sales director. . Previously, as more and more neighboring cities in Beijing increased their environmental standards for automobile environmental protection and jointly used old and used cars in Beijing, old and new motor vehicles from Beijing have become less frequent.

However, Beijing's second-hand car relocation still accounted for half of the total used car trade. According to statistics from Beijing Beichen Yayuncun Automotive Trading Market, Beijing used 56,700 vehicles in May, a 3.9% drop from the previous month and an increase of 90.9% year-on-year. At the same time, 49.4% of used cars were relocated in May. It accounts for 50.6%.

“Because it is impossible to relocate, the subsidies provided by manufacturers for replacement of used cars are useless. This has a great impact on the sales of new vehicles.” According to this analysis, Luo Lei believes that.

In the Beijing market, as replacement consumption occupies a large proportion of new car sales, once the replacement of used cars meets resistance, it will also directly affect new car sales.

"Previously relying on sales of second-hand cars will account for about 30% of new car sales, and it is expected to decline to 15% in the future." A dealer of Dongfeng Nissan told the "Daily Economic News" reporter.

Purchasers whose prices are lower than those in other places have already caused dissatisfaction among many Beijing consumers. Yan Jinghui, deputy general manager of the Asian Games Village Automotive Trading Market, told reporters that Beijing’s used car dealers are deliberately driving down the purchase price of vehicles due to the expectation of lower market risk in the latter part of the market.

“Subsidy policies for scrapped old vehicles continue until the end of this year, but market demand for used vehicles with good vehicle conditions still exists, but from the current market situation, scrapped vehicles will continue to increase.” Deputy Director, Beijing China Vehicle Alliance Technology Training Center Yang Xiaochen told the Daily Economic News reporter.