Electric Vehicles Outperform Traditional Japanese Brands in Used Car Market

A surprising twist in the used car market has emerged, with Chinese brands toppling traditional Japanese players in terms of resale value.

In an era dominated by gasoline-powered vehicles, models like the Toyota, Mazda, and Honda have been revered as solid investments. On the other hand, electric vehicles (EVs) from Japanese manufacturers have failed to gain traction, leaving them with lower resale values.

However, a more recent study by the China Automobile Sales Society (CASS) has revealed that Chinese brands are leading the way in terms of used car resale value. The top spot was claimed by Xiaomi's SU7 model, which boasts an impressive 88.7% retention rate over a year, outdoing even gasoline-powered vehicles.

So, what sets the SU7 apart from its competitors? Officials with the CASS hint that there are several factors at play. Firstly, manufacturers emphasizing unique selling points can significantly boost resale values. Secondly, models receiving significant attention and media coverage tend to retain their value better over time. Lastly, brands maintaining a strong reputation and consumer trust contribute to higher retention rates.

A fascinating finding from the CASS study is that the top-ranked used car retains its value remarkably well, even after 37 weeks ( around 6 months). Furthermore, for customers seeking more economical options, the SU7's price remains relatively stable at around 43-46 weeks. After all, who wouldn't want to drive home in an excellent investment?

The same trend holds true for other notable models such as Xiaomi's Qiuji M9 and Mege. These highly-regarded vehicle retains an impressive level of value, with average values close to those enjoyed by newer car types.

So what's going on? Could the secret lies in manufacturers prioritizing product development and media engagement? While officials stress that this only speaks to a vehicle's long-term value, it raises intriguing questions for potential consumers seeking better resale returns.