Talking about the used car focus. Firstly, we are trying to create a closed loop for the transaction. Actually for — it will cover all the full business chain of the used car transactions. We believe this would be the pain point in the used car market. And we are also going to launch the used car SaaS service and some other data products. In 2022, Autohome had finalized our operating. And in this way we enhanced the coordination of the resources and also have a better management not only on the 2C side, but also on the 2B side which achieved a good breakthrough. For example, we launched the innovative trading business and also used car SaaS products and the car history and the car condition data service. And we work with BIT on a lot of different data services.
In the future, Autohome is trying to build a one-stop solution for auto purchasing and a one-stop solution for the sales plus SaaS product. That is our strategic target. Now talking about the used car business model as you know it is under exploration for the whole market. We achieved a profitable business for the Autohome used car business. For the TPP, it achieved a breakeven on the later half of last year. So in this way, we are trying to build our used car business. The margin would be similar to our dealership business.
Operator: Thank you. Our next question comes from the line of Brian Gong from Citi. Please ask your question, Brian.
Brian Gong: I will translate myself. Good evening management. Thanks for taking my question. Congratulations on the solid results. I have two questions. First is regarding GDP. We just mentioned that we expect the used car industry to have an 8% year-on-year growth for 2023. With this number, how should we expect growth this year? And secondly management just mentioned that you expect some favorable policy towards auto industry to be rolled out this year. So, can management give more specific what kind of policies we are expecting ahead? Thank you.
Craig Yan Zeng: Well, thank you for the question. Talking about the COVID pandemic, it affected the used car business, because the transaction of the used car, need a lot of offline face-to-face communication. So that’s why in 2022, the used car business in domestic markets dropped experienced actually 9%. So now, the good news is that, with more and more supportive policies released and with the reopening up of the society post pandemic, we believe the used car market will experience very good growth this year. According to some market report, which said the growth can be 8%. We hope that this 8% is achievable and it will even achieve beyond 8%. And Autohome’s growth would be better than the market. Well, according to the auto market policy, as Mr. Long had already introduced to you, we believe that the auto market would benefit out of the policies.
Auto is a large amount consumption for the individuals or for families. It is different from housing, because housing is non-movable, it’s real estate. So that’s why, we believe that in March, there will be new policies released to further support the market. The market can be quite good. There were three factors, I want to mention. The first one is, the policy was trying to stabilize the sales of the new cars. And secondly, NEV continues to be the strategic focus of the market. And thirdly, for the used car, we believe that it would have a lot of potential to grow. If you look at the breakdown of the used car comparing with the new car sales, it only accounts for 60% of the car sales. But in some of the mature markets, the used car’s transaction volume was 2 times double or even triple, of the new car.
So in this way, we believe the used car market has a lot of potential.
