Second-hand circulation has been incorporated into top-level planning, bringing new opportunities for the development of the circular economy in the used car market.

Introduction: On July 3rd, the approved "15th Five-Year Plan for Circular Economy Development" was officially released, bringing second-hand goods circulation into the top-level strategy of the circular economy. The used car industry is ushering in a milestone policy dividend. This top-level guideline positions used car circulation as a key link in resource reuse, clearly quantifies industrial development indicators, and strongly guides the industry towards standardization, scaling up, and digital transformation. The industry leader in the national digital used car self-operated track, Uxin, with its warehousing and sales centers, vehicle condition traceability, and cross-regional online circulation system, highly aligns with the development direction outlined in this plan.

On July 3rd, the "15th Five-Year Plan for Circular Economy Development" was officially issued, listing "standardizing the circulation and transaction of second-hand goods" as a key task to expand the scale of resource reuse. The used car industry has been formally incorporated into the national top-level layout of the circular economy, ushering in a new window period for standardized and scaled-up development.. The plan sets clear long-term development goals for the industry. By 2030, the output value of the resource recycling industry is expected to reach 80 trillion yuan, with an annual recycling volume of 510 million tons for major renewable resources. A full-chain circular system covering production, consumption, recycling, and utilization will be comprehensively formed, making second-hand goods circulation a key lever for revitalizing stock resources and reducing the consumption of primary minerals.

This plan establishes a three-dimensional development framework of "reduction, resource utilization, and reuse." The reuse sector simultaneously deploys four development paths, promoting second-hand goods circulation alongside the import of recycled raw materials, the promotion of recycled materials, and the remanufacturing of components, significantly elevating its policy positioning. As the durable consumer good with the largest stock scale, used car circulation plays a core role in extending the vehicle lifecycle and unlocking urban mineral resources. China's car ownership continues to rank first globally. Vehicles contain large amounts of steel, non-ferrous metals, and rare resources. Standardizing second-hand circulation can extend vehicle usage cycles, reduce resource waste from premature scrapping, and complete the full closed-loop of "use — second-hand circulation — refined dismantling and regeneration," balancing both green and low-carbon goals and efficient resource utilization.

Supporting industrial policies are being implemented simultaneously, providing a clear path for expanding the used car market. In 2025, domestic used car transaction volume exceeded 20 million units, with the cross-regional transfer rate exceeding 31%. The prototype of a nationally unified circulation market is emerging, and the transaction ratio between new and used cars is steadily rising to 1:1, with endogenous market demand continuously being released. Related circulation development plans propose quantitative development goals, aiming for steady growth in used car transaction volume by 2027, while simultaneously cultivating scaled trading markets and digital circulation demonstration enterprises. Pilot reforms for automotive circulation have been implemented in multiple regions, with 8 cities specifically exploring innovations in used car circulation, simplifying cross-regional ownership transfers, improving vehicle traceability systems, and promoting the transformation of the dealership model, continuously addressing long-standing industry bottlenecks like regional circulation barriers, transaction taxes and fees, and opaque vehicle conditions.

Digitalization and standardization will become the core themes for industry upgrading. The plan proposes vigorously cultivating the circular economy service industry, encouraging the development of the "Internet + second-hand" model, building a full-lifecycle vehicle traceability system, and promoting the integrated implementation of vehicle condition inspection, intelligent valuation, and online transactions. The previous small, scattered, and weak business models of the industry struggled to meet the requirements of circular economy development. The policy direction clearly guides market consolidation, supporting leading circulation platforms with nationwide vehicle sourcing, standardized refurbishment, and one-stop service capabilities. Business entities that leverage digital technology to achieve one-code-per-vehicle traceability and remote inspection and assessment can better align with policy requirements and enjoy priority access to supporting benefits such as industrial support and fixed asset subsidies.

From an industrial value perspective, used cars have long transcended the realm of mere consumer goods transactions, becoming a vital part of the circular economy system. Every compliantly circulated used car can reduce the mineral consumption and carbon emissions associated with new car manufacturing, helping to improve overall societal resource output efficiency and support the overall goal of increasing the output rate of major resources by 16% by 2030. Looking at mature automotive markets, the scale of used car circulation generally exceeds that of new cars. The domestic industry still has significant room for growth. As restrictions on cross-regional transfers continue to be lifted, the reverse invoicing system is gradually improved, and supporting infrastructure for used car exports is established, the industry's growth potential will continue to be unleashed.

Industry transformation opportunities and regulatory requirements are arriving simultaneously. The plan repeatedly emphasizes strengthening industry supervision and standardizing second-hand transaction order, signaling the gradual exit of the extensive information arbitrage business model. Compliance, transparency, and scale become the foundation for long-term survival. Future market resources will concentrate on branded enterprises with standardized inspections, comprehensive warranties, and nationwide circulation. Small and medium-sized business entities will accelerate consolidation, and the overall operational quality of the industry will continue to improve.

Standing at the node of circular economy industrial upgrading, the top-level plan charts a clear development track for the used car industry. Leveraging the vast stock of automotive resources and multi-layered policy support, used car circulation will continue to release dual value in consumption and environmental protection. Industry participants must accelerate digital transformation, improve standardized services, and lay out cross-regional circulation networks to seize the benefits of industrial consolidation, deeply integrate into the 80-trillion-yuan circular economy landscape, and contribute to the comprehensive green transformation of the economy and society.