Gasgoo Munich- Recently, the China Automobile Dealers Association (CADA) and Jingzhengu jointly released the "April 2026 China Automobile Residual Value Research Report." Data shows that online used car supply recovered steadily in April, with residual values rising across multiple vehicle segments. Yet beneath the bustling surface, undercurrents are shifting: joint venture brands are seeing internal divergence, luxury brand residuals have stabilized across the board, and new energy vehicles (NEVs) are reaching a genuine turning point in market recognition after early "anxiety over depreciation."
Market Overview: Policy Spurs Trade-In Wave, NEVs See "Residual Value Recovery"
The defining feature of April's used car market was a "warming up." Yet this wasn't a broad-based rally; it was driven by a mix of policy support and consumption upgrades.
The report shows online supply extended March's recovery with a modest month-on-month gain. The main driver? Local "trade-in" policies rolling out across the country. These tangible financial incentives effectively unlocked long-dormant demand for upgrades, flooding the market with high-quality used vehicles. However, a slight year-on-year dip hints at lingering caution among buyers.
The late-April Beijing Auto Show, packed with new launches, combined with the approach of the Labor Day holiday, prompted many potential sellers to hold fire. They waited for the new-car price war to settle before making decisions, delaying the sale of their older vehicles. The report forecasts a surge in used-car supply in May as orders from the holiday are delivered.
Looking at residual values by segment, divergence is the keyword. Mainstream sedans and SUVs both saw slight month-on-month gains. This suggests that policy stimulus is unlocking demand for family cars and upgrades, providing price support for these "mid-market" segments.
Conversely, the slide in small-car residuals sounds an alarm. The report attributes this drop to direct pressure from falling prices in the new small EV market. In the pure electric small car segment, the BYD Seagull topped the list with a 53.5% residual rate, followed by the Dolphin at 48.9% and the Wuling Binguo at 48.8%. When new-car prices keep falling, the used-car pricing structure inevitably buckles.
The new energy market is enjoying a rare "collective rebound." The report shows residual values for both plug-in hybrids and pure electrics climbed in April. Plug-in hybrids performed particularly well, with a sharp month-on-month jump. Among major plug-in hybrid models, the top three for one-year residual value were the AITO M8, AITO M9, and TANK 400 New Energy — domestic brands sweeping the podium.
This reflects a core demand among used-car buyers: they want low running costs without range anxiety. Plug-in hybrids' "oil-or-electric" flexibility fits the dual desire for affordability and travel freedom, making them a "hard currency" in the market. In the high-value plug-in hybrid MPV segment, the Buick GL8 PHEV claimed the top spot with an 80.5% one-year residual rate, followed by the Trumpchi E8 New Energy and Denza D9 at 70.4% and 69.2%, respectively.
Brand Divergence: Joint Ventures Run Hot and Cold, Domestic Brands Push High-End
If the overall trend is warming, the brand landscape is playing out like a tale of ice and fire. The resilience of luxury brands contrasts sharply with the internal fragmentation of joint ventures.
First, look at the luxury market. The report shows most luxury brands saw residual values recover in April, with Porsche and Lexus holding the top two spots with slight gains. Among the traditional "BBA" giants, Mercedes-Benz and BMW both rebounded, while Audi dipped slightly.
Notably, Tesla also saw its residual value rise this month, staying near the top of the list. This shatters the stereotype that "EVs don't hold value," showing that leading new-energy brands are gaining steady recognition in the second-hand market. In the major pure electric model rankings, the top three for one-year residual value were the AITO M9, Li Auto MEGA, and ZEEKR 009, with domestic brands dominating. The broad stability of luxury residuals is essentially a confirmation of their brand premium power.
Unlike the stability of luxury brands, mainstream overseas brands (joint ventures) showed clear divergence. Japanese brands continue to dominate the charts, but Toyota and Mazda saw slight declines. This suggests that the relentless "price war" from domestic NEVs is further compressing the traditional premium space for Japanese used cars. In the joint venture mid-size sedan market, the Passat took the top spot, with the Avalon and Magotan following — a pattern where German brands remain firmly in control.
Meanwhile, American and Korean brands are seeing an unexpected rebound. The report notes that these brands have become hot choices for budget-conscious buyers in lower-tier markets, thanks to their strong value for money and solid mechanical reliability.
Domestic brands are also splitting. GAC Trumpchi and TANK remain at the head of the pack, maintaining high residuals thanks to their irreplaceable positions in the MPV and off-road SUV segments. In the domestic compact car market under 100,000 yuan, the MG5 led with a 65.7% residual rate, followed by the Alsvin and Emgrand. Additionally, most NEV and high-end domestic brands saw gains this month. For example, in the domestic plug-in hybrid mid-size sedan list, the BYD Seal 06 ranked first, with the Avatr 06 and Deepal SL03 following at 67.8% and 63.7%. In the pure electric mid-size SUV sector, the Onvo L60 topped the list with a 75.7% residual rate.
The report indicates that as domestic brands mature in battery, motor, and control technologies, and their market presence grows, consumer anxiety over the depreciation of domestic NEVs is easing. Market acceptance has truly reached a turning point. On the NEV brand residual value leaderboard, Leapmotor, BYD, Li Auto, ZEEKR, and NIO all posted significant gains, with leading domestic startups performing particularly well.
April's residual value report highlights three key trends: policy unlocking existing stock, the return of value for new energy vehicles, and brand competition entering a tech-driven phase. For consumers, residual value is a tangible cost of ownership. For automakers, it's a litmus test — the used market will tell you if the product is good and the brand is tough.
