BEIJING - China's used car market hit a record high in 2025, with transactions topping 20 million units, according to data from the China Automobile Dealers Association (CADA).

In December, the vehicle transfer rate, a key gauge of cross-regional circulation, climbed to 34.9 percent, up 4.7 percentage points from a year earlier.

The increase has helped unlock the circulation value of used vehicles and ease inventory pressure on local dealers, said Luo Lei, vice-president of CADA.

Supported by the continued expansion of China's new energy vehicle (NEV) holdings, used NEV transactions reached 1.6 million units in 2025, accounting for 7.9 percent of total used car sales, an increase of 2.2 percentage points year-on-year.

Looking ahead, Luo said that measures to rein in excessive competition in the auto industry, combined with the broader rollout of vehicle trade-in programs, are expected to help stabilize new car prices in 2026, thereby creating more favorable conditions for the used car market.