BEIJING – A number of automakers are working on new energy used vehicle buyback plans including establishing an assessment system which will come out by the end of this year, according to a report by Beijing Business Today.
Based on statistics released by China Association of Automobile Manufacturers (CAAM), sales of new energy vehicles in China were 207,000 units in the first seven months of the year and the country has become the biggest new energy vehicles market with total production and sales volume reaching 500,000 units. Some models, however, have already entered the replacement period.
“There is no used NEV market at the current stage, so we are considering making a buyback program for our used NEVs and intend to launch used NEV plans and standards at the end of the year,” said Zhao Changjiang, director of Beijing-Tianjin Branch of BYD Auto Sales.
Compared with current transaction prices which usually are lower than 40 percent of the original purchase prices in the used car market, BYD’s buyback price can be as high as 85 percent of the original purchasing price, said a person who has knowledge on the used car market.
Currently, there are no third-party testing organizations to conduct the assessment of used NEVs including the assessment on used NEVs’ electrical power systems and batteries. Zhang Yong, president of BAIC BJEV Sales, said: “There are no assessment standards in used NEV market. BAIC BJEV has been working on used NEV assessment standards and will launch a relevant program within this year.”
Tesla introduced the buyback service in North America and European: if a Tesla car owner wants to sell the car back to Tesla three years after purchasing the car with loans and pass certain verifications, Tesla will buy back the car at 50 percent of the original purchase price. In fact, Tesla announced to launch the buyback service program in China last year, the report said.
Cui Dongshu, director of China Passenger Car Association (CPCA), says that NEVs are still in the infancy stage and the used NEV market can only be developed when the NEV parc reaches certain scale after 5-6 years later.