WM Motors became the first electric vehicle manufacturer in China to step into the secondhand car market.
WM Motor showcased its used car brand at the conference of “New Energy Vehicle Residual Value 2019” on August 21. During the conference, WM Motor stated it would cut into the secondhand vehicle market through a business model of “direct purchase, direct refurbishment, direct sales, and direct rental.”
The new business model covers every aspect throughout a complete lifecycle of a used car, such as trading, refurbishing and car leasing. WM Motor, therefore, formed a closed-loop from car manufacturing and selling to car replacement.
“Electric motor, electronic control system and battery package are three essential parts of new energy vehicles, and battery package is the most important one among others. However, no industry standard and measurement method exist to assess residual value of battery yet,” said WM Motor’s founder and CEO Shen Hui (沈晖), “It is a challenge but also an opportunity for innovative enterprises.”
WM stated their evaluating system, online trading platform, official refurbishment recognition and quality guarantee system of secondhand cars are created for the first time in the new energy vehicle-making industry.
The company’s move indicates its ambitions of turning the dealer-orientated used car market to a manufacturer-orientated market, so as to improve residual value of electric vehicles from the source, lower replacement costs for users, and guarantee vehicle’s value in the secondary market.
Electric vehicle sales of WM Motor reached 9,167 units over the course of the first seven months this year, ranking the second after Xpeng Motor that sold out 9,214 electric vehicles.