China's second hand car market will be in full swing in the next few years, with its annual trade volume to hit 5.3 million units in 2008, according to a recent forecast from the Chinese Ministry of Commerce.

The figure will be close to the new car's trade volume, said Chinese economists. China expects to sell 6 million units in 2008, the ministry said.

From 1998 when China's first regulation on the methods for the second hand car trading was issued to 2003, China had experienced rapid growth in second hand car trading, with the annual growth rate exceeding 25 percent.

Currently, China's trade volume of second hand cars is only one-third that of the new cars.

As in many developed countries, the trade volume of second hand cars usually doubles or triples that of the new cars. Chinese economists forecast that there is a huge potential for the second hand car market in China.

Sources from the Chinese Ministry of Commerce said that Beijing and Shanghai are still China's two biggest second hand car markets, sharing about 20 percent of the country's total trade volume.

Statistics from the Beijing Market Association said that in the first ten months this year, trade volume of the second hand car reached 150,000 units, about 15,000 units each month.

China became the third largest auto market in the world in 2004, with sales volume standing at 5 million units. China now has 27.09 million units of cars, up from 10 million units in 1995. Of the total, 55.3 percent are owned by individuals.

(Xinhua News Agency November 22, 2005)