Going Global: Kelley Blue Book in China to Boost Used Car Market
Everyone needs a change of scenery from time to time—Kelley Blue Book just happened to go a bit farther than others might. The well-known U.S.-based auto researcher has partnered with Bitauto Holdings Ltd., a Chinese online automotive-marketing company, to bring consumers used-car pricing data to China, a service long-desired by car buyers in the world’s most populated country. The presence of Kelley Blue Book in China is a boon for used car dealers in the biggest economy on the planet.
Though China’s market for used cars is surprisingly small compared to that of the U.S., it’s definitely on the rise. Currently, new cars tend to sell more with nearly 14 million sold in China, compared to the 3 million used cars sold. Kelley Blue Book’s move might be just what Chinese automakers who are trying to sell used cars need. According to the chief financial officer of Bitauto, the demand for information about a car’s resale value is “quite significant.”
Both Kelley Blue Book and Bitauto will hold a 40 percent stake in the new company while the China Automobile Dealers Association will hold the other 20 percent, creating a venture that will provide more transparency in the used car market.
Do you think Kelley Blue Book is making the right move?
Tim Shults likes to play golf and spend time with his four daughters.