Departments of Commerce, Public Security Bureaus (Offices), the Guangdong Branch of the General Administration of Customs, and all directly subordinate Customs offices in each province, autonomous region, municipality directly under the central government, separately-planned cities, and the Xinjiang Production and Construction Corps:

Actively and prudently carrying out used car export business is an important measure to promote high-quality development of foreign trade and stabilize growth in foreign trade. It is also an important way to stimulate the vitality of the domestic automobile consumer market and promote the healthy development of the automotive industry. After research, we support the development of used car export business in mature regions (the initial list is attached). To ensure the related work is well conducted, we hereby notify the following matters: 1.Strictly select export enterprises. Regions carrying out used car export business should formulate implementation plans. In line with local conditions, comprehensively consider the integration capacity of used car sources, overseas market channels, after-sales service capabilities, and credit records to strictly select export enterprises. At the same time, establish assessment and exit mechanisms, implement annual assessments, and report the list of selected enterprises and the results of annual assessments to the Ministry of Commerce for the record. Enterprises with recorded used car exports may apply for export permits from the provincial-level (including separately planned cities) commerce authorities in their region. The Vehicle Identification Number (VIN) should be filled in the remarks column of the permit.

2.Strictly perform used car transaction registration and cancellation procedures. Used car export enterprises must legally handle the registration procedures for used car transactions after purchasing vehicles domestically. Within two months after handling the used car customs export clearance procedures, they should apply to the local public security traffic management department for cancellation of registration with the export customs declaration and legally required certificates. Before applying for cancellation of registration, all road traffic safety violations and traffic accidents involving the export vehicle must be resolved.

3.Ensure the quality and safety of export products. Export vehicles must meet the market access standards of the target export country. If the target export country does not have access standards, export vehicles must comply with the relevant standards of the used car export region. Relevant regions should develop and improve used car export inspection standards, clarify inspection items and qualification standards, and vehicles that meet the scrapping standards set by the "Motor Vehicle Mandatory Scrapping Standard Regulations" and vehicles within 1 year (including 1 year) of the required usage limit must not be exported. Product inspection reports issued by third-party inspection agencies are required, and the export of unqualified, stolen, or assembled vehicles is strictly prohibited. Used car export enterprises are the main bodies responsible for quality traceability and must strictly perform duties such as product inspection and truthful disclosure of vehicle information.

4.Ensure overseas after-sales service. Local commercial authorities should guide used car export enterprises to formulate reasonable market plans and establish overseas maintenance parts supply systems corresponding to the export brand and quantity. Through self-built after-sales service networks, cooperation with overseas high-quality dealers and after-sales channels, and training of overseas after-sales maintenance personnel, ensure the supply of spare parts and after-sales service for export vehicles, and focus on cultivating the international competitiveness of used cars centered on quality, brand, and service; supervise export enterprises to establish emergency response mechanisms for quality issues and promptly coordinate the resolution of major overseas quality and after-sales service issues.

5.Strengthen supervision. Relevant regions should strengthen organizational leadership, establish a coordination mechanism among departments, clarify responsibilities, and follow the principle of "who is in charge, who supervises, who is responsible" to effectively manage and control all types of risks. Used cars that have not been registered for transfer according to regulations will not be granted export permits by commercial authorities. Enterprises that have not handled the cancellation of registration within the specified time limit will not be granted new used car export permits by commercial authorities until the cancellation is completed. For exported vehicles that are stolen, assembled, or scrapped in violation of regulations, the enterprise's used car export qualifications will be canceled, and if a crime is constituted, criminal responsibility will be pursued according to law.

6.Optimize services. Commerce, public security, and customs authorities should establish a vehicle information sharing mechanism. Strengthen information management, achieve "one vehicle, one file," and gradually realize traceability throughout the entire process of vehicle collection, transaction, transfer registration, preparation, inspection, export, cancellation, and after-sales service. Guide used car export enterprises to strengthen industry self-discipline, standardize competitive behaviors, and maintain export order. Strengthen service awareness, and provide convenience for enterprises in the issuance of export permits, port clearance, and vehicle cancellation. Regions carrying out used car export business should closely monitor the progress of used car export activities, address new issues and situations as they arise, further refine and improve work plans, continuously optimize supervision and service models, strengthen statistical analysis and effect evaluation, and regularly report relevant information. Ministry of Commerce of the People's Republic of China Ministry of Public Security of the People's Republic of China General Administration of Customs of the People's Republic of China April 26, 2019

Xinhua News Agency, Chengdu, July 25th (Reporter Li Like) The first national used car export international train departed from Chengdu International Railway Port on the 25th. The train carried a total of 40 used cars from 9 brands and 11 car series, and will be exported to Cambodia via sea-rail intermodal transport. It is understood that in April this year, the Ministry of Commerce, the Ministry of Public Security, and the General Administration of Customs jointly issued the "Notice on Supporting the Development of Used Car Export Business in Mature Regions". Sichuan (Chengdu) became one of the first ten cities in the country to pilot used car exports, and five companies became the first batch of used car export pilot enterprises in Chengdu. This export, consisting of 40 used cars valued at $500,000 in total, was completed by the pilot enterprise Sichuan Hongmeng Zhongtuo Automobile Import and Export Trading Co., Ltd.

Hu Wei, the chairman of the company, introduced that the company has signed export orders for a total of 500 used cars, including the first batch of 40 vehicles, with a total value of approximately $3 million. The clients of this batch of orders are mainly located in Southeast Asia, Africa, South America, and the Middle East, and will be shipped successively from Chengdu International Railway Port in the near future.

The head of Chengdu's Commerce Bureau stated that by the end of 2018, China's car ownership had reached 250 million, with an annual used car transaction volume of 13.82 million. Chengdu's motor vehicle ownership exceeds 5.3 million, with an average annual increase of over 480,000 vehicles over the past six years, and a vibrant used car market. Additionally, there is strong international demand for used car imports; the global used car import market in developing countries and regions is valued between $60 billion and $80 billion, with countries and regions such as Southeast Asia, Russia, and Africa importing over 1 million used cars annually.

It is reported that, in addition to Sichuan Hongmeng Zhongtuo Automobile Import and Export Trading Co., Ltd., other used car export pilot enterprises in Chengdu have successively signed used car orders totaling over 1,000 vehicles destined for Cambodia, Mongolia, Russia, Kazakhstan, and other countries.

"Ministry of Commerce General Office, Ministry of Public Security General Office, General Administration of Customs General Office

Notice on Accelerating the Progress of Used Car Exports
Relevant Matters

Commerce Office Trade Letter [2019] No. 335

To the commercial authorities of each province, autonomous region, municipality directly under the central government, separately-planned city, and the Xinjiang Production and Construction Corps, Public Security Departments (Bureaus), and to the Guangdong Branch of the General Administration of Customs, and all directly subordinate Customs offices: To accelerate the progress of used car exports, further simplify work procedures, and create a facilitating environment for exports, we notify the following matters:

1.Simplify the registration procedures for the transfer of exported used cars. Starting from November 20, 2019, for used car export enterprises applying for the transfer registration of motor vehicles, after returning the original vehicle license plate and vehicle registration certificate and after vehicle inspection, the public security traffic management department shall annotate the motor vehicle registration certificate with "Transfer Pending Export", issue a temporary vehicle license plate that crosses administrative jurisdictions. The validity of the temporary vehicle license plate shall be consistent with the validity of the compulsory insurance for motor vehicle traffic accident liability, but shall not exceed 60 days; for vehicles purchased by used car export enterprises from different locations, there is no need to return to the enterprise’s jurisdiction to handle vehicle transfer procedures, and the motor vehicle records shall be retained by the traffic management department of the public security authority where the vehicle is registered. Within 2 months after handling the customs export procedures for used cars, the enterprise may apply for the cancellation of registration with the traffic management department of the public security where the vehicle is registered, using the export customs declaration and the motor vehicle registration certificate among other proof documents. If the export customs declaration and other documents are already checked through an information network, submission of physical documents is not required.

2.Change from "one vehicle, one permit" to "one batch, one permit" for used car export permits. Starting from November 1, 2019, export enterprises may apply for up to 20 used cars under the same commodity code item on the permit application form. The number of applications should match the actual customs declaration quantity, and clearance should be completed in one go. If the number of customs declarations is less than the number applied for, a new permit must be obtained.

3.The national integration model of customs clearance applies to used car exports, and enterprises may independently choose the customs declaration location and exit port.

4.Commerce, public security, and customs authorities should, according to the "Notice on Supporting the Development of Used Car Export Business in Mature Regions" (Commerce Trade Letter [2019] No. 165) and relevant regulations, enhance service awareness, simplify processes in accordance with local conditions, and provide convenience to enterprises in aspects such as vehicle transfer registration, export permit application, port clearance, and vehicle cancellation.

Ministry of Commerce General Office, Ministry of Public Security General Office, General Administration of Customs General Office

October 28, 2019"

"Three Departments: 14 New Locations to Develop Used Car Export Business"

Xinhua News Agency, Beijing, December 6 (Reporter Xie Xiyao) - The reporter learned from the Ministry of Commerce on the 6th that the Ministry of Commerce, Ministry of Public Security, and General Administration of Customs recently jointly issued a notice on further expanding the geographic scope of regions developing used car export business, deciding to add 14 new regions for the development of used car export business.

According to the notice, new regions including Liaoning Province, Fujian Province, Henan Province, Sichuan Province, Hebei Province (Shijiazhuang City), Inner Mongolia Autonomous Region (Hohhot City), Jilin Province (Hunchun City), Heilongjiang Province (Harbin City), Jiangsu Province (Suzhou City), Zhejiang Province (Wenzhou City), Shandong Province (Weifang City), Guizhou Province (Guiyang City), Yunnan Province (Kunming City), and Xinjiang Uyghur Autonomous Region (Bortala Mongol Autonomous Prefecture) are to develop used car export business.

The notice clearly requires strict selection of enterprises, namely that regions developing used car export business should establish local enterprise entry standards, standardize the selection procedures, and support enterprises with strong comprehensive competitiveness such as the ability to integrate car sources, overseas marketing channels, and after-sales service capabilities, to carry out used car export business. Establish an enterprise assessment and exit mechanism, implement annual assessments, and suspend or cancel the qualifications for developing used car export business for those who do not fulfill quality assurance responsibilities or export unqualified, stolen, assembled, or scrapped vehicles. The list of selected enterprises and the results of annual assessments are to be reported to the Ministry of Commerce by the provincial commerce authorities for the record.

The notice also requires strengthening organizational leadership, ensuring the quality and safety of export products, improving the quality and scale of exports, effectively fulfilling regulatory responsibilities, and continuously optimizing the business environment.

Commerce and Trade Issue [2024] No. 25

To the departments responsible for commerce, industry and information technology in each province, autonomous region, municipality directly under the central government, separately planned cities, and the Xinjiang Production and Construction Corps, Public Security Departments (Bureaus), Departments (Bureaus, Commissions) of Transportation, the Guangdong Branch of the General Administration of Customs, and all directly subordinate customs:

Since the issuance of the "Notice on Supporting the Development of Used Car Export Business in Mature Regions" (Commerce Trade Letter [2019] No. 165) by the Ministry of Commerce, the Ministry of Public Security, and the General Administration of Customs, significant progress has been made in the used car export business, creating a batch of replicable and promotable experiences, which has played a promotional role in stabilizing the scale and optimizing the structure of foreign trade, as well as upgrading domestic automobile consumption. To further promote the development of used car exports, after research, the Ministry of Commerce and other 5 departments have decided to carry out used car export business nationwide and have issued the 6th announcement of 2024 (hereinafter referred to as the announcement). The following notifications are regarding the proper conduct of related work: 1.Effectively Strengthen Organization and Implementation Localities should establish special work mechanisms, clarify the responsibilities of all parties, ensure that related work is carried out in a standardized and orderly manner, and promote the healthy and sustainable development of used car export business. Localities should, in accordance with the requirements of the announcement, effectively carry out related work on used car exports, focusing on ensuring export quality and reputation and regulating export order, avoiding excessive and vicious competition. Commerce authorities must strictly follow the relevant regulations and procedures for the application and issuance of used car export permits, while the departments of industry and information technology should manage the entry of road motor vehicle manufacturers and products. The public security traffic management departments should handle the related registration management of used car exports, and the transportation authorities should guide the inquiry service of maintenance data archives for exported used vehicles. Customs should manage the customs clearance supervision related to used car exports. For vehicles exported illegally or in violation of regulations, stop accepting applications for used car export business from enterprises, and if it constitutes a crime, pursue criminal responsibility according to the law.

2.Strictly Ensure Quality and Safety Export vehicles should meet the "Quality Requirements for Export of Used Passenger Cars" (WM/T 8-2022) or "Quality Requirements for Export of Used Commercial Vehicles and Trailers" (WM/T 9-2022), and product inspection reports should be issued by third-party inspection institutions. If the target export country has entry standards, export enterprises should also declare compliance with local standards. Encourage used car export enterprises to use the "Automotive Repair Electronic Health Record System" to check vehicle maintenance records. Used car export enterprises are the main bodies responsible for quality traceability and must strictly perform duties such as product inspection and truthful disclosure of vehicle information, and exporting stolen, smuggled, illegally assembled, or scrapped vehicles is strictly prohibited.

3.Enhance International Business Capabilities Encourage localities to build used car export bases that integrate functions such as display trading, maintenance, inspection and certification, customs declaration and export, warehousing and logistics, and financial services, enhancing aggregation efficiency. Encourage qualified used car export enterprises to set up motor vehicle registration service stations to achieve one-stop handling of transfer registration and cancellation of export used cars. Guide enterprises through self-construction, resource sharing, or multi-channel cooperation to build overseas maintenance service systems, add overseas after-sales service outlets, and multi-channel guarantee spare parts supply. Support automobile manufacturers to further improve international marketing networks, fully leverage advantages such as brands and channels, and genuinely enhance the level of after-sales maintenance services for self-produced automobiles overseas. Encourage qualified enterprises to establish public display trading centers and overseas warehouses in key markets. Fully utilize various trade promotion platforms to support enterprises in expanding overseas market channels. Encourage the innovation of used car export marketing models and actively explore the construction of used car export e-commerce platforms, auction platforms, etc.

4.Strengthen Supervision and Services Localities should timely track the export situation in their regions, strengthen supervision and management of all links in used car exports, achieve full-process traceability, and effectively prevent and control various risks. Establish a local used car export credit evaluation system, guide enterprises to operate legally and with integrity, strengthen industry self-discipline, regulate competitive behavior, and maintain export order. For used car export enterprises recorded by the commerce authorities, when applying to the public security traffic management department for handling export used car transfer registration, it is no longer required to submit the original business license; a copy of the business license stamped with the company seal, a power of attorney, and the identity proof of the authorized person may be submitted as proof of the current motor vehicle owner's identity. Optimize supervisory processes and enhance the level of trade facilitation in line with local conditions. The Ministry of Commerce, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, the Ministry of Transportation, and the General Administration of Customs, will strengthen supervision and inspect the work of used car exports.

Ministry of Commerce

Ministry of Industry and Information Technology

Ministry of Public Security

Ministry of Transportation

General Administration of Customs

February 7, 2024

Used Car Exports: A New Bright Spot in Foreign Trade

With the establishment of "one-stop" service centers across the country, the pace of used car exports has accelerated, becoming a new highlight in China's foreign trade growth this year.

In February this year, the Ministry of Commerce and other five departments decided to carry out used car export business nationwide and issued the sixth announcement of 2024, transitioning used car exports from a pilot system to an application system. Since then, local commerce departments have strongly supported capable and willing enterprises to apply for used car export qualifications and engage in used car export business. Since the application process began, about 2,800 enterprises have been registered for used car export qualifications nationwide, with the annual export volume of used cars expected to reach a new milestone of 400,000 units.

High Concentration of Export Destinations

Data from the Ministry of Commerce shows that from 2019 to 2023, China exported a cumulative total of 367,000 used cars, amounting to $8.74 billion, reaching over 160 countries and regions. In 2023, China exported 275,000 used cars.

Data from the China Automobile Dealers Association shows that from January to July this year, China exported 203,000 used cars, with the volume expected to reach 400,000 for the year, a year-on-year increase of about 30%.

Currently, the main target markets for China's used car exports are countries along the "Belt and Road" route, such as Central Asia, Eastern Europe, and the Middle East. Kyrgyzstan, Russia, Uzbekistan, the UAE, and Kazakhstan rank among the top five countries for China's used car exports. The top ten destination countries and regions account for about 90% of China's total used car exports, indicating a very high concentration. This suggests that Chinese enterprises have adopted a focused strategy on cultivating certain markets, while also reflecting the increasingly fierce competition in these markets.

From January to July, the UAE ranked first in terms of the volume of used cars exported from China, followed by Kyrgyzstan, Russia, Uzbekistan, and Kazakhstan. Some used car dealers use Central Asia as a transit point, rerouting to sell to Russia.

The global export volume of used cars exceeds 5 million units, indicating significant overall export potential. Currently, China's used car exports account for only 3% of new car exports, which is still significantly lower compared to Japan, the US, and South Korea, suggesting considerable room for growth.

Liao Zhiyong, Assistant Chairman of Guangdong Haoche Holdings Ltd., stated that China's used car exports face many favorable conditions, such as strong national policy support, ongoing advancement of the "Belt and Road" initiative, vast international market demand, and the continual enhancement of the competitiveness of China's automotive industry. As the pace of new car exports from China accelerates and the visibility of Chinese car brands continues to rise, the entire automotive industry chain, including technology, products, and after-sales services, keeps improving. Many countries have introduced favorable policies for importing new energy vehicles, including tax reductions and relaxed import conditions.

This year, the business opportunities for exporting high-mileage used cars have gradually emerged. Liao Zhiyong analyzed that this is due to the transmission of new car price wars leading to a drop in used car prices in China, differentiated support policies for used car exports issued by national and local governments, and the gradual improvement of the supporting supply chain services, with huge potential in after-sales and parts exports. It is clear that high-mileage used cars should be a key area of expansion for used car export enterprises and are entering a period of rapid development.

Rationally Addressing Numerous Challenges

Despite the overall positive situation for used car exports, Liao Zhiyong cautioned that domestic enterprises should soberly recognize that used car exports still face numerous problems and challenges, such as a complex and volatile international environment, increasing domestic competition, alignment with overseas standards, brand building, and after-sales services.

The international environment is complex and variable, such as local conflicts affecting import and export trade, hence export enterprises need to be capable of dealing with complex international situations. Furthermore, a trend of internal competition among export enterprises is emerging, such as product homogenization, lack of transparency in vehicle conditions, and odometer tampering. The industry should continuously strengthen self-regulation and operate with integrity. Third, in terms of systematic construction, although domestic infrastructure is relatively well-developed, the supporting systems such as overseas service points and financial support still need to be established. There is also a lack of credit ratings for export enterprises and credit data for overseas enterprises.

Tian Tian, Deputy Secretary-General of the China Automobile Dealers Association, noted that in addition to the complex international situation, adjustments to automotive import policies by destination countries have a significant impact on trade. For example, Russia has adjusted its tariff policies several times; several Central Asian countries have imposed restrictions on imported vehicles; and Jordan in West Asia has raised the tax rate on imported electric vehicles, requiring specific Mac certification.

Additionally, various trade credit risks and exchange rate risks in international trade cannot be ignored. For instance, used cars shipped to Russia but not yet paid for suffered significant losses due to the substantial depreciation of the Russian ruble. Therefore, enterprises must be cautious in handling various customs affairs and procedures to mitigate overseas buyer credit risks and exchange rate risks.

Another issue that cannot be overlooked is the incomplete supporting systems in the domestic used car export field, especially in terms of financial support. In Japan and South Korea, both new and used car exports are inseparably linked to the supporting financial systems, such as Japan's Mitsubishi UFJ Bank, Mitsui Sumitomo Bank, and Mizuho Bank, which have accompanied Japanese enterprises overseas.

Tian Tian suggested that Chinese enterprises could strengthen communication with banks that have international backgrounds and experience in automotive foreign trade to seek bank credit and foreign exchange settlement support for used car export business and to rate the credibility of export enterprises.

Grouping Together for Exports to Avoid Disorderly Competition Facing new changes in domestic and foreign situations, Liao Zhiyong suggested that used car export enterprises should focus on the following key points: First, they should seize opportunities and actively explore international markets. Fully leverage national policy benefits, deeply understand the laws, regulations, consumer habits, and demand characteristics of target markets, accurately position and implement strategies. Change the previous extensive management and simple trade mindset.

Second, strengthen cooperation, avoid vicious competition, and achieve mutual benefit and win-win situations without underpricing. Relying solely on price as a competitive means would only be self-destructive. Additionally, strengthen exchanges and cooperation within and outside the industry, build supply chain systems, coordinate operations, share resources, seek development together, and jointly create internationally competitive used car export brands. The overseas market is vast, and there are opportunities in every region and sub-field. Chinese enterprises should not cluster, for instance, if the Russian and Central Asian markets perform well, everyone rushes there, leading to disorderly competition. Different enterprises should play to their strengths, utilize their respective capabilities and resources, group together to explore overseas markets, and face more intense competition abroad.

Third, focus on innovation and enhance core competitiveness. Enterprises should continuously innovate in product selection, value-added services, marketing strategies, etc., to enhance the added value and market competitiveness of exported used cars. Future competition will not be limited to price but will also involve after-sales, spare parts and related services, brand promotion, sales channels, and even autonomous driving and AI technology to enhance the added value of products and services and overall corporate competitiveness.

Additionally, used car export enterprises should also strengthen their internet promotion capabilities. Currently, domestic car dealers lack overseas customer resources. If used car export enterprises can deeply cooperate with internet companies, build their own independent sites, form an independent site group of exporters, each targeting different products, fields, and keywords, overall traffic can be aggregated, connecting with overseas customers externally and with massive domestic car sources internally, building up a Chinese automotive export traffic system similar to TikTok's entire business system, forming a model where everyone contributes and benefits, enterprises earn money from traffic, those with sales capabilities earn sales profits, and those providing related supporting services earn income from those services. In this way, the entire used car export system is interconnected.

Untapped Potential in the African Market "Our country's used car exports mainly flow to Central Asian countries and Russia, but after two years of market baptism, it has become difficult for enterprises to make money in these regions, so this year we are focusing on exploring the African market," stated the CEO of SRC Super Technology, an automobile export trade company, Zhong Yi.

Zhong Yi explained that the African market is promising for several reasons that have basically matured. First is the source of cars; with the domestic volume of used car transactions climbing year by year, there is an ample supply of vehicles. Second is the need to maintain stable national relations; China has long maintained good cooperative and mutually beneficial relationships with African countries. Third is demand; African consumers have some personalized needs for used cars, such as due to poor road infrastructure, customers require a vehicle ground clearance of 18 centimeters. If domestic used cars are sold locally without adjusting the ground clearance to 18 centimeters, it is likely that the chassis will be damaged during driving, potentially causing battery fires. Fourth is the volume of ownership; Africa's population is nearly 1.4 billion, but the car ownership per thousand people is only 23, providing a good opportunity for China's export of used cars. Additionally, the average age of customers in the African market is very young, and the average monthly income is about 500 to 1,000 RMB, similar to China in the 1990s, making low-priced cars very marketable.

It is also important to note that different African countries have different demands for left-hand drive and right-hand drive cars. Zhong Yi mentioned that previously, for countries that drive on the right, Chinese used cars could not be exported. The conversion of left-hand drive and right-hand drive vehicles indeed presents certain technical difficulties. For this reason, SRC Super Technology Company has cooperated with professional modification companies to establish a preparation center, which can utilize its own advantages to convert domestic used cars into right-hand drive vehicles before exporting them, thus meeting local market needs and adding product value, achieving differentiated export products.

Logistics Should Consider Efficiency, Cost, and Safety Logistics is an important part of used car exports. Shenzhen Che Lizi Technology Co., Ltd.'s co-founder and CMO, Shi Feifei, stated that in terms of improving transportation efficiency, supply chain logistics have built a high-efficiency transportation network, integrating diversified and flexible modes of transportation, including roads and railways. The transportation network includes domestic distribution centers and transportation lines, including overseas distribution centers.

Optimization of transportation methods in supply chain logistics has reduced transportation costs and time. For example, from the port to Central Asia or Russia, they would choose different transportation methods based on different destination countries to improve efficiency, reduce costs, and enhance the competitiveness of export enterprises. Especially in the case of fluctuations in transport capacity and freight rates, optimizing transportation processes can ensure timely arrival of vehicles. For example, a direct transportation method is used for Central Asia, and a transfer method is selected for Russia to reduce unnecessary costs and expenditures.

An intelligent logistics management system plays a key role in enhancing transportation efficiency, enabling full-process monitoring of used car transportation, from loading vehicles domestically to tracking each link. If transportation delays are discovered on the intelligent platform, enterprises will communicate with customers in a timely manner and quickly respond by adjusting transportation plans.

Yunqu Na Logistics Technology Group Co., Ltd. (hereinafter referred to as "Yunqu Na") related business person in charge introduced that used cars exported in parallel currently mainly consist of electric vehicles, while pure used car exports are mostly fueled vehicles, with very few electric vehicles.

The main modes of used car export by sea include container and roll-on/roll-off shipping. When transporting electric vehicles, most shipping companies require that the remaining battery charge of the vehicles be maintained at 20% to 30%, and also need to provide methods for cutting off power. Additionally, due to different brands and models of cars having different operation methods, shipping companies also require exporters to provide a series of safety manuals, such as how to respond to emergencies, including fires during transportation, sudden failure to start after arriving at the port, etc. There needs to be the ability to formulate emergency plans to ensure transportation quality and safety. It is understood that Yunqu Na's professional team has 25 branches globally, including in Mexico, Brazil, Singapore, Thailand, Vietnam, Malaysia, the Philippines, etc., which can assist in connecting with local legitimate traders as needed, thus being familiar with specific local requirements and processes, providing logistics pre-plans for used car exports, controlling the entire process, avoiding situations where export enterprises find their vehicles lacking qualifications or inadequate safety measures only after sending them to the shipping company, ultimately affecting transportation and delivery cycles.

Let Data "Run More" and Enterprises "Run Less"

Zhang Xu, Senior Manager of the Used Car Management Department of the Marketing Combat Division at Beijing Automobile International Development Co., Ltd., frankly stated that the parallel export boom in the past two years, while opening up new markets and warming up foreign markets, has also brought certain negative impacts to export enterprises with manufacturer backgrounds, impacting the manufacturers' overseas markets. Some used car export enterprises have brought the trend of "internal competition" abroad, disrupting local market pricing systems, leading to increasingly fierce market competition in Central Asia, the Middle East, and Russia.

Regarding the current difficulties in used car exports, Zhang Xu believes that they mainly manifest as different policies in various countries overseas, low matching of car sources, enterprises searching for cars per order, and finding cars being very difficult. In terms of export tax rebates, public vehicles can be refunded 13% tax, while personal vehicles cannot be refunded tax, resulting in a 13% price difference and causing profit loss. Regarding vehicle licenses, the vehicle qualification certificate that comes with a new car is kept by the vehicle management office for two years after the license is issued and then destroyed, causing the seller to be unable to provide it to dealers or buyers who need it during export.

Additionally, overseas customers are more accustomed to selecting products and leaving contact information on Alibaba International Station. While Japan has an international platform where cars can be found and paid for online, and the shipping and logistics progress can be tracked. Therefore, it is hoped that China can also establish such an online platform more suitable for used car exports.

Yang Zetao, founder of Hui Mao Tianxia (Beijing) Technology Co., Ltd., pointed out that many used car trading platforms in China have not yet formed a service closed loop in their export business. Although some enterprises rely on industry resource advantages to establish used car export marketing/service platforms, they mostly focus on online display, communication, and connection, and have not truly achieved full-process services such as online car selection and online transactions. To address the above issues, the Beijing Used Car Export Service Center is under construction. China (Beijing) International Trade "Single Window" can provide standard business handling services for the entire link for used car export enterprises, including enterprise qualifications, origin, licenses, customs declaration, export tax rebate, tax and fee payments, etc. Based on the integration model of "Hui Mao OS + Xin Mao Chain + Service Matrix", it aggregates various high-quality services from over 100 trade enterprises, including marketing, logistics, payment settlement, inspection and preparation, legal and financial tax, etc.

Today, Hui Mao Tianxia is based on the "Single Window + Xin Mao Chain" to build the Beijing Digital Used Car Export Service Center, aggregating online and offline marketing, inspection, logistics, customs affairs, settlement, and other service resources, providing one-stop comprehensive services for the entire chain for used car exports, allowing data to "run more" and enterprises to "run less".

Xin Mao Chain not only can reduce the trust cost of international trade but also ensures information security (end-to-end, blockchain system evidence storage, traceable), in addition, it can automatically match supply and demand through smart contracts, and data automation programs can automatically acquire customers, without intermediaries, reducing costs. Additionally, the system can achieve global order tracking, achieve a transparent supply chain, and provide queries for carbon footprints. Among them, the data vault can automatically recognize and archive various data, forming data assets, providing support for subsequent queries, applications, and enterprises applying for credit loans.

In 2024, China's used car exports surged by 436,000 units, with the UAE becoming the largest market! In 2024, China's used car exports witnessed substantial growth, reaching 436,000 units, an increase of 46.5% from the previous year. Facing fierce competition in the global automotive industry, Chinese-made used cars are emerging on the world market, especially in the emerging market of the UAE, where their significance is increasingly prominent.

According to the latest published statistical data, the export value in 2024 reached 9.21 billion US dollars, an annual increase of 23.3%. Such growth not only invigorates the domestic industry but also showcases the strong demand and recognition of Chinese used cars in the international market. The UAE has become the largest importing country, surpassing Kyrgyzstan, leading the market trend with tens of thousands of units imported.

The demand for used cars in the Middle East and Central Asia is increasingly strong, with the UAE, Kyrgyzstan, Russia, Kazakhstan, and Uzbekistan together accounting for 66.9% of the total volume of China's used car exports. Through Dubai Port in the UAE, Chinese used cars have not only become a popular choice in the Middle East market but are also gradually radiating to broader markets such as Africa.

Over the past few years, China's used car export environment has continuously improved. Since 2019, China's used car export business has gradually unfolded, with the number of export enterprises skyrocketing from the initial 47 to more than 3,000 today. This progress reflects the international consumers' favor towards the quality and cost-effectiveness of domestic used cars. Compared to some regions, domestic used cars are highly sought after for their unique cost-effectiveness.

In addition to conventional used car products, many vehicles are also exported through various methods such as modifications. The performance of this segment of the market makes the 2024 export figure of 436,000 units just the tip of the iceberg, with the actual export situation potentially being much larger, demonstrating the industry's flexibility and adaptability.

Looking forward, the African market will become a new blue ocean for China's used car exports. Given the changes in the global market, especially the geopolitical impact on the Russian market, an increasing number of Chinese used car exporters are turning their attention to Africa as a new marketing frontier, expected to be an important pivot for growth in the coming years.

In summary, the success of China's used car exports in 2024 not only showcases the global competitiveness of our country's automotive industry but will also drive the rapid advancement of the Chinese used car industry in the transforming international market. Diversified export destinations and flexible export channels will be the inexhaustible driving forces for future development. At the same time, facing increasingly fierce market competition and a changing external environment, how to grasp the changes in the global market will become the core challenge for major used car exporters to address."