China accelerates pace of second-hand car exports

BEIJING: Over the past five years, China has witnessed significant progress in the export of used cars, showcasing practices that could be emulated nationwide. This surge in exports has contributed to the stabilisation and growth of foreign trade, as well as the enhancement of domestic automobile consumption.

Since the inception of a pilot programme in 2019 that was aimed at exporting second-hand automobiles, the number of vehicles exported from China witnessed a remarkable surge of over 350 percent in 2022, reaching 69,000 units, a substantial increase from approximately 15,000 units in the preceding year, as reported by People’s Daily Online.

A substantial portion of these exports consists of new energy vehicles (NEVs), with Tianjin Municipality, located in North China, being one of the pioneering cities for such exports. Enterprises within Tianjin’s Dongjiang bonded zone have successfully exported a variety of vehicles, including engineering and commercial vehicles, alongside traditional and new energy p
assenger cars. Currently, NEVs constitute over 70% of the zone’s total used car exports.

The market for China’s used cars has expanded globally, reaching more than 140 countries and regions, as highlighted at the 2023 annual conference of China’s automotive distribution industry. The primary destinations include five Central Asian countries, several African nations, and parts of Southeast Asia. Additionally, Russia has emerged as a key market since 2022.

The Russian market has shown consistent growth, with the European market also gaining momentum amid an energy crisis, leading to a significant increase in exports to both Western and Eastern Europe.

Efforts have been made to streamline export procedures and enhance the used car export industrial framework, signaling the untapped potential within this sector. With 435 million motor vehicles reported on China’s roads in 2023, the need for new markets is evident due to the vast vehicle population and the rapid turnover of cars.

Policy support has played a cr
itical role in the expansion of used car exports. In July 2023, measures to boost automobile consumption were introduced, including incentives for exporting used cars that meet specific quality standards. Subsequent guidelines and support measures were announced, culminating in a notice issued on February 7, 2024, to expand used car export operations nationwide.

This strategic move aligns with the trends of market upgrading and replacement within the domestic auto industry, aiming to satisfy international demand for used cars, particularly in countries involved in the Belt and Road Initiative. However, as the sector is still developing, there’s a call to learn from the successes of nations like Japan and South Korea. Adapting their strategies to China’s unique market conditions and international regulations could foster more effective business models and enhance the global reputation of Chinese used cars.

Source: Emirates News Agency

Recent Posts

Popular Post