China used car market hits milestone amid dealer losses and Autohome revenue decline

China's used car market reached a significant milestone in the first half of 2026, with transaction volumes hitting 971.32 million units, a 1.5% year-on-year increase. This volume is now roughly equal to the retail scale of new passenger vehicles, marking a 1:1 ratio between new and used car transactions.

However, the industry faces severe structural challenges. Approximately 30,000 physical used car dealerships have exited the market so far this year, averaging 166 closures per day. Over 70% of remaining dealers are reporting losses, with average profit margins compressed to approximately 4%, down from historical levels of 20%–30%. This downturn is largely driven by aggressive price wars in the new car market, which force used car prices down and create inventory risks for dealers.

Simultaneously, industry leader Autohome reported a significant decline in its 2026 semi-annual results. The company's revenue fell 30% year-on-year to 2.246 billion yuan, while net profit dropped 62.2% to 292 million yuan. The decline is attributed to a weakening dealer ecosystem and a shift in consumer behavior toward short-video and live-streaming platforms, which are disrupting traditional vertical automotive websites.