The rapid evolution of China’s new energy vehicle (NEV) market has transformed it into a sector akin to fast-moving consumer goods， with updates occurring as frequently as every six months. This accelerated product cycle， while driving innovation， has concurrently led to a significant depreciation in the residual value of NEVs.
Domestic media reports indicate that in the first half of 2025， the cumulative transaction volume of used cars in China reached 9.5701 million units， a year-on-year increase of approximately 2%， with a total transaction value exceeding 600 billion yuan. To further manage and liquidate the growing inventory of used vehicles， auctions are becoming an increasingly prevalent method in the market.
Unlike traditional internal combustion engine (ICE) vehicles， which are typically auctioned individually， NEVs are often sold in bulk ‘packages.’ These packages can comprise anywhere from a dozen to hundreds， or even up to a thousand vehicles， usually of similar model years and specifications. This ‘packaged’ auction approach is largely attributed to the substantial fleets owned by ride-hailing platforms， which have been at the forefront of adopting NEVs and are also experiencing the fastest upgrade cycles. As these fleets are refreshed， a large volume of used NEVs consequently enters the secondary market through auctions.
Furthermore， Deng Dongxu， founder of Xiaoyan New Energy， points out that NEVs are statistically more prone to significant accident claims， referring to instances where repair costs fall within the 30，000 to 50，000 yuan range. The higher payout for such claims contributes to the rapid expansion of the overall auction market for NEVs. This trend suggests that while NEVs may offer environmental benefits and potentially lower running costs， their susceptibility to substantial repair bills after accidents can significantly impact their long-term value and risk profile for owners and resale markets.
Examining the auction data for 2024， the average auction price for ICE vehicles stood at 38，700 yuan per unit. Pure electric vehicles averaged 46，400 yuan per unit， while plug-in hybrid (PHEV) models fetched an average of 61，100 yuan per unit. Compared to 2023， all three major vehicle categories experienced a year-on-year decline in their average auction prices in 2024. PHEVs saw the most substantial drop， with an average auction price decrease of approximately 28.9%. This steep depreciation， especially for PHEVs， underscores the market’s current challenges in valuing these increasingly complex vehicles.
“My newly purchased NEV depreciates by at least 50% within a year. This is simply unacceptable，” expressed many NEV owners interviewed about their experiences. This sentiment highlights a critical issue for consumers， impacting the perceived economic viability and long-term ownership satisfaction associated with NEVs.
