On October 25, 2022, Beijing - At the moment of gradual growth of car ownership, the second-hand car market is also releasing its benefits. The comprehensive cancellation of the policy of restricting the relocation of second-hand cars, the implementation of separate endorsement for the transfer registration of second-hand cars, the issuance of temporary license plates, and the adjustment of the number of inspection times for non operating passenger cars have greatly activated the second-hand car market. In the circulation process of second-hand cars, "automobile value preservation rate" is a key word. In order to provide consumers with a more intuitive and accurate reference for car purchase, J.D. Power | Jundi and 58 Auto jointly released the Research Report on China's Automobile Hedge Rate in 2022, which analyzes and displays the current situation of the domestic second-hand car market and the value preservation rate in the past year from the perspectives of manufacturers, countries, brands, etc.

Research Report on China's Automobile Hedge Rate in 2022 jointly issued by J.D. Power and 58 Automobile

The report shows that, according to the statistics at the regional level, in 2022, second-hand car transactions will be concentrated in economically developed municipalities and provincial capital cities, regardless of whether they are fuel vehicles or pure electric vehicles. In terms of best-selling models, the transactions of second-hand fuel vehicles and second-hand pure electric vehicles are concentrated in compact cars and minicars respectively, accounting for more than 30% of the total transactions. High cost performance and economy are the main reasons for the popularity of the two models; The proportion of medium-sized vehicles and compact SUVs in the fuel vehicle trading market has increased, and the proportion of small vehicles and compact vehicles in the new energy vehicle trading market has increased, due to the improvement of consumers' economic level, which is not limited to the vehicle's transportation function alone.

J. Su Jun, President of D. Power China, said: "Since 2019, J.D Power and 58 Auto have jointly released the Research Report on China's Automobile Hedge Rate for four consecutive years. With the increase in the number of new energy vehicles, this year we will also include the pure electric vehicle hedging rate list into the research category. For consumers, the value preservation ratio is an important reference for them to purchase cars; For automobile enterprises, it is an important measure of brand management and model life cycle value management. We hope to promote the recognition and attention of the whole industry and consumers to the hedging rate by continuously exporting the value and data of the hedging rate to the industry and consumers. "

With the increasing competition in the automobile market and the more rational purchase of cars by consumers, the multiple values of the value preservation ratio for the sales of new and used cars and the core businesses of automobile enterprises will be further highlighted. Behind the high value preservation rate is that a brand is recognized by consumers, which reflects the comprehensive strength of brand, product and service. Automobile enterprises must establish a customer experience management system throughout the whole life cycle to achieve the remodeling of brand value.

Fuel vehicles: Japanese cars lead independent brands in maintaining value

The value preservation ratio is an important indicator to measure the value of a brand and a model. Thanks to the scarcity of models and the high brand premium, the value preservation ratio of imported vehicles is higher than that of joint ventures and domestic models. The value preservation ratio of Japanese vehicles leads with absolute advantages, and independent brands continue to rise.

From the manufacturer's perspective, a total of four models in the top five are from Japanese brands, with a high market share and a stable position of mainstream models, driving the overall manufacturer's value preservation rate to increase steadily. Among them, Lexus ranked first with a hedge ratio of 68.5%, followed by Dongfeng Honda and Porsche with a hedge ratio of 63.9% and 63.5% respectively.

Among self owned brands of fuel vehicles, the overall performance of self owned brands this year is better than that of last year, showing a significant upward trend, reflecting that consumers' recognition of self owned brands is increasing. This year's report shows that the overall value preservation rate of self owned brands is 46.5%, up 1 percentage point compared with last year. Beijing Off road won the first place in the value preservation rate of independent fuel vehicle manufacturers with 53.2%, GAC Trumpchi ranked second with 52.8%, and SAIC GM Wuling ranked third with 51.7%.

Pure electric vehicle: it is included in the selection of independent brand for the first time with obvious advantages

As the market for second-hand new energy vehicles continues to heat up, this year's value preservation rate of pure electric vehicles was included in the research category for the first time. In fact, the value preservation rate of new energy vehicles is still restricted by fast battery decay and limited life of electronic components. The research shows that the independent brand advantage of pure electric vehicle manufacturers in the value preservation ratio is obvious, which is related to such factors as accurate positioning, new technology, and adequate subsidies. Tesla, Xiaopeng Automobile and Weilai all have one-year hedge rates above 70%.

Self owned brands have made an early start in the field of pure electric vehicles and are highly recognized. In the Top 15 list of pure electric vehicle value preservation rates, there are a total of 12 brands from self owned brands, and there are many new power products such as Xiaopeng P7 and Weilai ES6. Hongguang MINIEV exceeded Model X with a hedging ratio of 85.3%, and Xiaopeng P7 ranked third with a hedging ratio of 82.5%.