AKD Embraces Transformation Amid Used Car Market Boom

AKD, a leading used-car company, is embracing the transformation of the industry by scaling production and implementing digitalized management. As an important link in the automobile industry chain, the trade in used cars is becoming standardized and professional.

At AKD’s center in Jiading’s North Hongqiao Business District, thousands of cars are on display, including prestigious brands like Porsche, Mercedes-Benz, BMW, Audi, Land Rover, and Toyota, as well as new-energy vehicle brands such as Tesla, NIO, and Li Auto.

“Live-streaming is a good way to sell cars. AKD Shanghai runs about 130 live-streaming sales events monthly,” said Zhu Xia, head of the Shanghai center. “And it performs well. About 30 percent of our total sales are now achieved through live-streaming events.”

Digitalized management at AKD covers the entire lifecycle of auto consumption. Each automobile at the center has a condition report accessible via a QR code, allowing customers to learn about a vehicle’s maintenance, insurance, and renewal records. An online platform synchronizes online and offline car information, offering recommendations and promoting standardized development.

“Digitalized management offers clear information and promotes standardized development,” said Zhu. “Hopefully, used-car trading on our platform in the future will be as convenient as buying a cellphone on an e-commerce platform.”

AKD has moved away from the traditional rental service mode and agency model, establishing its own brand, exhibition halls, and brick-and-mortar stores to offer a high-end second-hand car shopping experience. The company is also organizing a 500-strong pre-sales and after-sales team, responsible for car renewal, which involves 360 testing, certification, and renewal steps. Each used car undergoes restoration over seven days with the help of 10 senior technicians.

“We’ve been carrying out a buy-it-now service for more than 10 years,” Zhu said. “We offer customers a good price after thoroughly judging a car’s condition, its mileage, and the market. When purchasing a used car, we assure the sellers that we won’t have a gross profit margin higher than 5 percent. If we do, then 50 percent of the additional part will be returned to the seller.”

Car registration can be accomplished on the same day at AKD, and the whole process might be completed as quickly as within 30 minutes.

Used car trading is set to play a bigger role as the nation’s car market continues to expand. In 2023, the accumulated transaction volume of used cars in China was 18.4133 million, up 14.88 percent year on year. Its accumulated transaction amount reached 1.179 trillion yuan (US$162 billion).

AKD has served over 300,000 customers nationwide. About 20,000 cars are transacted at AKD every year, with a transaction value exceeding 10 billion yuan. Currently, AKD is present in Shenzhen and Chengdu and will soon open in Tianjin.

By leveraging digital management and innovative sales strategies, AKD is setting new standards in the used car market, offering customers a seamless and high-quality shopping experience.