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China Takes Steps to Promote Used Car Exports

To promote used car exports, China’s Ministry of Commerce and four other departments jointly issued a notice on February 5 regarding matters related to the export of used cars. On February 7, they released a “Notice on Further Improving the Practice of Used Car Exports” (the “Notice”), to implement used car export businesses in 10 pilot cities nationwide.

The Notice encourages localities to establish used car export bases, achieving efficient results by integrating functions such as showrooms, handling of transactions, maintenance, inspection and certification, customs clearance, support for exports, warehousing, logistics, and financial services. As after-sales service is the biggest challenge for the used car dealers, the Notice directed companies to establish overseas maintenance service systems through self-construction, resource sharing, or multi-channel cooperation. This means setting up additional after-sales service outlets overseas and ensuring a supply of spare parts through multiple channels. It supports automotive companies further expanding their international marketing networks and fully leveraging brand and channel advantages. It also encourages companies to establish public showroom and sales centers and overseas warehouses in key markets.

China’s customs data shows that the volume of China’s used car exports has repeatedly reached new highs since the used car export pilot launched in 2019. In 2021, China exported 15,000 used cars. This figure soared to 69,000 in 2022. As of 2023, used Chinese cars have been sold in more than 140 countries and regions worldwide. The main markets are the five Central Asian countries, Africa, and some Southeast Asian countries. Since 2022, Russia has also become an important market. Now, the Western and Eastern Europe markets are increasing significantly due to energy shortages; a considerable portion of the used cars exported from China are electric vehicles.

Source: Xinhua, February 27, 2024