SHANGHAI: Petrol vehicles are losing their advantage in resale value in China, as price competition and rapid technological change reshape the country’s automotive market.
The average three-year retention rate of petrol vehicles fell to 46.07% in the first half of 2026.
Meanwhile, the figure for new energy vehicles (NEVs) stood at 44.8%, according to a report released by the China Automobile Dealers Association and vehicle valuation platform Jingzhengu.
The scenario was a different story just a few years ago. In 2023, petrol vehicles’ three-year residual value averaged 62%, 20 percentage points higher than NEVs’.
Data from used-car platform Guazi showed a similar trend.
In September, the three-year retention rate for fuel-powered vehicles on the platform was 51.1%, down 0.4 percentage points from August, while the rate for NEVs rose 0.5 percentage points to 48%.
NEVs aged one to two years even recorded higher retention rates than their fuel-powered counterparts, according to the platform’s monthly report.
Petrol vehicles, particularly established foreign brands, have traditionally commanded stronger resale values, supported by service networks and relatively predictable product cycles.
But the latest figures suggest that petrol cars can no longer be assumed to hold their value better simply because of their powertrain.
One major pressure on petrol cars’ residual values is the changing price environment in the new-car market.
As automakers cut new car prices to defend sales, the value of comparable used vehicles comes under pressure.
Buyers can compare used models against discounted new vehicles, forcing dealers to adjust their valuations.
The pressure is significant for volume brands, including Toyota and Volkswagen, which are facing intensifying competition from domestic brands and NEVs.
Even vehicles that once enjoyed strong resale premiums can lose value when new-car discounts widen or their product competitiveness weakens, according to the reports. — China Daily/ANN
