One of the biggest online used vehicle markets in China, Alibaba's Taobao and Uxin, are teaming up to fight the poor variety of used cars available in most Chinese cities.
“With extremely limited car selection in most cities, there is a rapidly growing demand for an online platform that expands access to used cars from across the country,” Dai Kun, CEO of Uxin, said in a statement.
The companies will establish an online used car shopping mall with features including video VR car viewing to give prospective buyers a better indication of the car’s condition, hoping to foster growth in the already growing used car e-commerce sector.
Since China moved to lift bans on the trade of non-local used cars, the industry has been showing signs of growth. In 2017, 12.4 million secondhand vehicles were sold. While it may not sound like much given the country’s population, the figure represents an annual growth rate of 19%. Sales are expected to reach 20 million by 2020.
Dai says that buyers, especially those in lower-tier cities, have become more receptive to buying used cars as a cost-effective alternative to new vehicles.
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