(Yicai) Jan. 14 -- China’s second-hand vehicle transaction volume rose nearly 3 percent last year from the year before, surpassing 20 million units for the first time as rapid growth in the new energy vehicle market and streamlined cross-regional trading boosted activity.

The total number of used vehicles traded reached 20.1 million units, with transaction value amounting to CNY1.3 trillion (USD186.4 billion), according to data released yesterday by the China Automobile Dealers Association. Second-hand passenger vehicle transactions edged up 0.4 percent to 15.7 million units, while used commercial vehicle trades climbed almost 8 percent to 2.9 million units.

Amid the fast expansion of NEV consumption in China, the share of second-hand NEV transactions continued to rise. Used NEV trading volume hit 1.6 million units last year, accounting for almost 8 percent of the total, up from nearly 6 percent in the previous year, CADA said.

China has also been simplifying procedures for cross-regional used vehicle transactions in recent years, further lifting market activity. The proportion of cross-regional second-hand vehicle trades reached almost 35 percent in December, up from a bit more than 30 percent a year earlier.

As the industry matures, used vehicle prices have shown greater stability. The average transaction price stood at CNY64,500 (USD9,250) in December, up CNY400 (USD57) from November and CNY1,400 (USD201) from a year ago.

Second-hand vehicles are increasingly becoming the first choice for young first-time car buyers in China due to their cost-effectiveness, according to a report jointly released in December by ByteDance-backed automotive content platform Dongchedi, also known as Dcar, and the China Automotive Technology and Research Center.

The report noted that young buyers typically purchase used vehicles priced between CNY50,000 and CNY100,000 (up to USD14,331), place the greatest emphasis on vehicle condition and price, and prefer to complete transactions through online platforms.

Editors: Dou Shicong; Emmi Laine