CHINA'S USED EV MARKET CRUMBLES AS DEALERS SHUN 5-YEAR-OLD CARS

China's used EV market is experiencing a collapse as dealers refuse to accept vehicles over five years old. The core issue centers on battery degradation and replacement costs that make older EVs economically unviable for resale. Battery packs—the most expensive component of an electric vehicle—deteriorate over time, losing charging capacity and range. Replacement costs often exceed the resale value of aging vehicles, creating a market death zone for cars entering their second life. This depreciation crisis exposes a fundamental vulnerability in EV ownership economics. Early EV adopters face mounting losses as their vehicles age, particularly in markets where battery technology has rapidly improved, rendering older models obsolete. The problem extends beyond China. As Western EV fleets age and enter the used market in coming years, buyers will confront similar battery concerns. Manufacturers and policymakers face pressure to address battery longevity, standardization, and affordable replacement solutions before the issue destabilizes EV adoption rates globally.