The head of mainland car dealer Zhongsheng Group expects growth in the market for reliable second-hand autos to outpace new car sales in the coming years.
'Right now we don't even have a item on our income statement for second-hand sales ... but this is going to be a huge and very important factor for us,' said Huang Yi, chairman of the biggest Hong Kong-listed auto dealer by market value and a major mainland dealer for Toyota, Lexus, Nissan and Mercedes-Benz.
'I think in the next few years sales of used cars will grow at more than 20 per cent,' he said.
Huang also said Zhongsheng's same-store sales are 'certain' to rise at least 10 per cent this year, bucking a trend in slowing sales growth across the market by focusing on mid and high-end brands.
Huang said the company has confirmed plans to open its first Jaguar Land Rover dealership, in Shandong province, next year, and approvals are pending for its first Volvo showroom, which would be located in Fujian province.
Zhongsheng plans to increase its number of showrooms from the present 114 to almost 140 by the end of this year and 180 by late 2012.
All Zhongsheng dealerships that have been in business for more than a year are stepping into the second-hand car market, when they begin to build a stock of cars that have been traded for purchases of new cars.