China's second-hand car sector registered strong expansion in June, with its sales volume surging 19.2 perent month on month, data from the China Automobile Dealers Association shows.

Approximately 1.42 million used cars changed hands last month, with a total transaction value of 95.94 billion yuan (about 14.21 billion U.S. dollars), according to the association.

The market logged a much improved performance in June as the overall COVID-19 control situation improved and restrictions on used car relocation were further eased, the association said. Favorable tax policies for new car consumption also increased demand for car replacement.

In the first half of the year, about 7.59 million second-hand cars were traded, down 10.07 percent year on year. The total transaction value topped 526.33 billion yuan in the period, data shows.

Noting that car replacement drives demand in the auto market, the association said it is upbeat about used car consumption in July and expects the trading volume to exceed that recorded in the same period over recent years.

It is also optimistic about trading in the second half of the year, as policies to boost the market, unleash auto consumption potential further, and promote the free flow of used cars take effect.