German car companies aim at China's used car market

A few days ago, according to Reuters, the strong demand for new cars in the Chinese market laid the foundation for the further development of BMW, Mercedes-Benz and Audi's three major German luxury car manufacturers. At the same time, high-end car manufacturers are also eyeing China's second-hand premium car trading market.

China is the world’s largest auto market, with annual growth rates of around 8% to 10%. Chinese customers have a strong demand for new cars, especially the more affluent customers who hope to demonstrate their status through high-end models. “We are accelerating the development of second-hand sales. At present, we have nearly 290 dealers selling certified used Audi models,” Rupert Stadler, chairman of Audi, said in an interview at the Beijing auto show. In addition, Steader also said: "I believe that in the near future, used car sales will increase significantly." Audi expects that by 2020, its sales in China can be increased by 40%. In order to meet the ever-increasing demand for new and used cars, Audi also plans to train 40,000 to 50,000 new salespeople each year by 2017.

Due to the rising potential of the used car market, Audi competitor BMW also plans to train 25,000 people each year in order to increase the sales capacity of Chinese distributors. “Of course, used cars still account for only a small part of our total business in China,” said Ian Robertson, BMW’s board member. “In Europe, dealers sell one new car each time they sell it. Used cars. In China, the sales ratio of our new and used cars is only 10:1."

Mercedes-Benz manufacturer Daimler also targeted the used car business in China and plans to add 100 new sales in 40 cities. "The used car market is growing. We are also investing more in this area and we are expanding our dealer network," said Troska, head of Daimler China. In 2013, China's total automobile sales increased by 13.9% to 21.98 million vehicles, of which premium vehicle delivery also increased by 20%. Last year, Mercedes-Benz’s sales increased by 11% year-on-year, and it is planned that by 2015, its annual sales in China (excluding Hong Kong) will exceed 300,000.