China Automobile Dealers Association: The used car managers index in January was 46.5%, down 0.6 percentage points from the previous month.

The China Automobile Dealers Association released the latest "Used Car Manager Index" (UCMI). The data shows that the Used Car Manager Index for January 2026 was 46.5%, an increase of 6.3 percentage points year-on-year, and a decrease of 0.6 percentage points month-on-month, reflecting a slight decline in the prosperity of the used car market in January 2026 compared to the previous month, still in a recessionary range. Used Car Manager Index for January Looking at the trend of the Used Car Manager Index, the used car market was in a key stage of transition between old and new ecology in January this year. On one hand, due to the year-end effect at the end of last year, some consumers rushed to purchase cars before the end of the subsidy policy for replacing old cars with new ones, resulting in a release of car demand in December, which depleted some demand in January; on the other hand, in 2026, two new policies will change the scrap subsidy to be based on the proportion of the new car's selling price (average individual car subsidy will decrease by 20%-30%), unify replacement subsidies nationwide, introduce strict requirements on ownership time for vehicles, and gradually implement the local replacement subsidy application process, increasing consumer wait-and-see sentiment. At the same time, new regulations on the export of used cars also restricts the short-term export of used cars. According to the survey, there was a slight decrease in demand in the used car market in January, with 28.8% indicating a decrease in market demand. Analyzing from the perspective of demand in the used car market, it reflects that the consumer purchase decision cycle has been prolonged, the wait-and-see sentiment has intensified, and there are also some rigid consumer needs such as travel for the Spring Festival and family replacement, resulting in a slight decline in overall demand in January 2026 compared to December of last year. Used Car Sales Volume in January The survey shows that the sales volume of used cars in January 2026 was basically flat compared to December of the previous year. On the one hand, in December, used car managers focused on clearing inventory, significantly easing inventory pressure in the market in January, and managers generally adopted a strategy of "control receipts, fast turnover", with the replenishment of sources matching the market outflow; on the other hand, on the demand side, after the year-end consumption release in December, the pre-holiday travel needs for the Spring Festival and family trips have been released, offsetting the impact of some car owners delaying replacement due to fluctuations in car prices, resulting in no significant rise or fall in overall supply and demand. Used Car Transaction Prices in January The survey shows that the inventory of used car dealers decreased in January, and the inventory turnover time increased compared to the previous month, indicating that although dealers actively controlled inventory by tightening the pace of car receipts, the slowdown in vehicle sales due to weak demand and the dual impact of the new car market has slowed down the speed of vehicle turnover and ultimately led to a passive increase in the inventory turnover time. Used Car Inventory Status in January The survey shows that 81.0% of used car managers in January believed that their own operating conditions were at a "normal" level, an increase compared to the previous month, while the proportion of those who believed that their operating conditions were good decreased, indicating that overall operating pressure for used car dealers has increased. Among the surveyed used car managers, two-thirds believed that turnover capital decreased by more than 15%, while eight-tenths of managers believed that the turnover capital in February was similar to January. Operating Conditions in the Used Car Market in January Overall, the domestic used car market maintained a stable operating trend in January. Despite the gradual release of essential car purchases and dealers increasing efforts to clear inventory before the holiday, the overall operating performance of dealers this month remained at a normal level. Looking ahead to next month, used car managers indicated that the last concentrated release before the Spring Festival will mainly focus on essential needs and inventory clearance, but factors such as policy adjustments (implementation of the policy for replacing old cars with new ones), the long Spring Festival holiday, and promotions for new cars will influence a decrease in used car transactions in February. The expected index is 43.6%, indicating a recessionary range. Considering the approaching Spring Festival holiday, it is recommended that used car dealers closely monitor the ongoing changes in transaction pace influenced by fluctuations in supply and demand.