CHINA'S AUTOMAKERS URGED TO ENTER SECOND-HAND BUSINESS

16 Jul 2013 07:54
BEIJING, July 13 (Bernama) -- China is encouraging car manufacturers to enter the second-hand auto market to cash in on the growing sector and boost China's auto consumption, Xinhua news agency reported. Deng Li, deputy director of the Market System Development Department from the Ministry of Commerce (MOC), said China is working to speed up the development of its second-hand car market. Automakers will be encouraged to utilise their existing dealership network to expand second-hand auto trading business. MOC figures showed second-hand vehicle sales stood at 7.94 million units last year and growing faster than new vehicle sales but accounting for only 40 percent of total sales. Experts said a lack of quality assurance is among the main reasons preventing Chinese consumers from purchasing second-hand vehicles. Chinese automaker FAW Group is making its own foray into the used car business, and is working on a second-hand vehicle project that includes several of its models. The company will provide vehicle inspection, price evaluation and car transaction services as part of the project. China also intends to build regional second-hand vehicle markets and an online national platform for second-hand vehicle bidding. --BERNAMA EE