Second-hand Car Sales Growth Impact On New Car Innovation

The coordinated development of online used car e-commerce and offline second-hand car market has brought huge user traffic and attention to the industry,which has a huge impact on new car sales.The growth of used car sales,on the one hand,the use of used cars and new cars in the same market to compete with each other has a certain substitution effect,so squeeze out the sales of new cars.On the other hand,due to the existence of a certain residual value of the old car,some consumers are prompted to turn to the old and new,which leads to a certain promotion effect on the sales of new products.Second-hand car sales have a dual impact on new car sales,which in turn affects manufacturers’ profits,and manufacturers make decisions about the new car innovation for profit maximization(reverse recursion).This paper firstly constructs an analysis framework based on dynamic model by combing and deriving.In the model,both consumers and manufacturers must maximize the current and future benefits in decision-making,and hope to find the rapid circulation of used cars to enterprises.What decisions are made by the launch of new products.Then,in the empirical analysis,the upgrade of the same series of vehicles represents the vertical innovation of the car.The number of new models represents the horizontal innovation of the car,and studies the impact of the growth of second-hand sales on the innovation of new cars,thus providing some practical management for decision makers in the real economy strategy.This paper also draws the following conclusions:(1)The increase in used car sales has a significant effect on the vertical innovation of the car(the upgrade of the same series of car models)and the horizontal innovation of the car(the increase in the number of new models);(2)second-hand The faster the car sales growth,the greatest impact on the upgrade speed of low-end models,the upgrade rate of high-end models and mid-range models is only second.(3)The increase in sales of used cars is not much different from the upgrade of models of domestic and foreign auto brands and the number of new models.(4)The growth of used car sales is positively related to the quality of the car.Promoted to all durable goods second-hand transactions,the coordinated development of online and offline digital economy promotes the trading of second-hand items,which in turn affects the profit of manufacturers.At this time,manufacturers are willing to innovate products,which is for each durable goods manufacturer.Product innovation decisions have important implications.