release time:2024/2/27
China is the world's largest country in terms of car ownership and consumption. Where will the old car go after buying a new one? More and more used Chinese cars are driving abroad and selling to various parts of the world.
The Ministry of Commerce and five other departments recently issued a notice on matters related to the export of second-hand cars, clarifying the nationwide implementation of second-hand car export business.
Previously, the Ministry of Commerce, the Ministry of Public Security, and the General Administration of Customs issued a notice in 2019 on supporting the export of second-hand cars in areas with mature conditions. Beijing, Tianjin, Shanghai, Zhejiang (Taizhou), Shandong (Jining), Guangdong, Sichuan (Chengdu), Shaanxi (Xi'an), Qingdao, Xiamen and other 10 regions have become the first regions in China to carry out second-hand car export business.
In the past five years, China's second-hand car exports have made significant progress, forming a number of replicable and promotable experiences, which have played a promoting role in stabilizing the scale and structure of foreign trade and upgrading domestic automobile consumption.
Sold to over 140 countries and regions worldwide
The second-hand car export industry in China is gradually moving towards scale. According to customs data, since the pilot work of second-hand car exports was launched in 2019, China's second-hand car exports have repeatedly reached new levels. In 2021, China's second-hand car exports were about 15000 units, and in 2022, this figure jumped to 69000 units, a year-on-year increase of over 350%.
Export models gradually stabilize——
A considerable portion of the second-hand cars exported from China are new energy vehicles. Tianjin is one of the first pilot cities for the export of second-hand cars in China. In recent years, second-hand car export enterprises in the Tianjin Dongjiang Comprehensive Bonded Zone have explored the export of engineering vehicles, commercial vehicles, traditional energy, and new energy passenger vehicles. Among them, the export of new energy second-hand cars has become the main business sector of second-hand car export enterprises due to the prosperous supply and sales, currently accounting for more than 70% of the second-hand car export models in the bonded zone.
The target market continues to expand——
At the 2023 China Automobile Circulation Industry Annual Conference Second hand Car Export Forum, Luo Lei, Assistant President of the China Automobile Circulation Association, stated that with the joint efforts of the entire industry, Chinese second-hand cars have been sold to more than 140 countries and regions across the country.
It is reported that the target markets for China's second-hand car exports are mainly five Central Asian countries, Africa, and some Southeast Asian countries. Since 2022, Russia has become an important market for China's second-hand car exports. The person in charge of a second-hand car export company said that since last year, the Russian market has continued to perform well, and the European market has also been activated. Affected by the energy crisis, China's second-hand car exports to Western Europe and Eastern Europe have significantly increased, and the second-hand car export market is gradually extending to Europe.
Simplified export process——
Recently, Henan Jinyou Industrial Co., Ltd. adopted the "export early declaration+customs transfer" model to declare the export of a batch of second-hand domestic new energy vehicles, which will be transported to the Belarusian market through the "green channel" of the China Europe Express (Zhengzhou) automobile export. To assist the export of second-hand cars from Henan, Zhengzhou Customs has promoted the online verification of second-hand car export permits, improved the efficiency of "early declaration+direct loading upon arrival" operations, created a "green channel" for automobile exports through "China Europe freight trains+sea rail intermodal transportation", helped enterprises achieve seamless connection between logistics, loading and unloading, and supervision, and reduced the overall clearance time for automobile exports by more than 50%.
A more complete industrial system——
In order to better serve the markets in West Asia and Central Asia, Tianjin Zhongyun Cheda International Trading Company has built a pre export warehouse for second-hand cars in Kashgar, Xinjiang, covering an area of over 90000 square meters. Taking advantage of Kashgar's location advantage, the models with good market feedback are transported in advance for storage and display. It is reported that pre positioned warehouses not only shorten logistics time, but also transform "finding vehicles according to orders" into proactive sales, enhancing the initiative and service level of Chinese enterprises. The company will also build an overseas warehouse for second-hand car exports in Uzbekistan, further leveraging the overseas market through a "dual warehouse linkage" approach.
In 2023, the number of motor vehicles in China reached 435 million, including 336 million cars. At the same time, with the rapid development of China's new energy vehicle industry, high-quality and reasonably priced Chinese new energy vehicles are not only popular in the domestic market, but also have established a reputation overseas, laying a solid foundation for the export of used cars.
"There is great potential for China's second-hand car exports," Xu Haidong, Deputy Chief Engineer of the China Association of Automobile Manufacturers, told our reporter that China has a large number of cars and a fast pace of elimination, and a large number of second-hand cars need new sources. After several years of pilot projects, China's second-hand car exports have gained certain experience and capabilities, and can supply the global market.
Policy support helps industries enter the fast lane
"China has entered a critical turning point in the transition between new and old cars." Zhang Jianping, deputy director of the Academic Committee of the Research Institute of the Ministry of Commerce, told our reporter that under the background that China's automobile production and sales have exceeded 30 million units, developing used car export business nationwide, on the one hand, it adapts to the current trend of upgrading China's automobile market, on the other hand, it is also conducive to meeting the needs of other countries, especially the "the Belt and Road" Co build the demand for second-hand cars in the country.
Behind the large-scale development of second-hand car exports, there is strong policy support.
In July 2023, the National Development and Reform Commission and other departments issued several measures to promote automobile consumption, proposing to strengthen policy guidance and services for export tax rebates, and support and encourage the export of second-hand cars that meet relevant quality requirements; In September of the same year, the Ministry of Commerce and five other departments issued a draft announcement on matters related to the export of second-hand cars, stating that they would fully support the export of second-hand cars, expand the scale of second-hand car exports, and improve the quality of second-hand car exports.
In order to promote the healthy and orderly development of China's second-hand car exports, the Ministry of Commerce and five other departments issued a notice on matters related to second-hand car exports on February 5 this year, and on February 7, issued a notice on further improving the work of second-hand car exports (hereinafter referred to as the "Notice"), deciding to carry out second-hand car export business nationwide.
Strict guarantee of quality and safety - The announcement mentions that circulation enterprises applying to carry out second-hand car export business must have the ability to identify and evaluate second-hand cars, and hire at least three professional identification and evaluation personnel. According to the Notice, exported vehicles should meet the Quality Requirements for Exporting Used Passenger Cars or the Quality Requirements for Exporting Used Commercial Vehicles and Trailers, and a third-party testing agency should issue a product testing report. If the export target country has access standards, the export enterprise should also declare compliance with local standards. Encourage second-hand car export enterprises to use the "Electronic Health Record System for Automobile Maintenance" to query vehicle maintenance records.
Enhance international business capabilities - Encourage the construction of second-hand car export bases in various regions that integrate functions such as display and trading, maintenance and preparation, testing and certification, customs declaration and export, warehousing and logistics, financial services, etc., to enhance agglomeration efficiency. Encourage eligible second-hand car export enterprises to establish motor vehicle registration service stations, and achieve one-stop processing of export second-hand car transfer registration and cancellation registration.
Improving the level of trade facilitation - When second-hand car export enterprises registered with the competent commerce department apply to the public security and traffic management department for registration of the transfer of exported second-hand cars, they are no longer required to submit the original business license. Instead, they can submit a copy of the business license stamped with the official seal of the unit, a power of attorney, and the identity certificate of the entrusted person as proof of identity for their current motor vehicle owner. Based on local realities, optimize regulatory processes and enhance the level of trade facilitation.
Further strengthening supervision and services - The "Notice" clearly states that all regions should timely track the export situation in their respective regions, strengthen supervision and management of various links in the export of used cars, achieve full traceability throughout the process, and effectively prevent and control various risks. Establish a local credit evaluation system for second-hand car exports, guide enterprises to operate in compliance and integrity, strengthen industry self-discipline, regulate competitive behavior, and maintain export order.
Improve after-sales service and create a good reputation
China's second-hand car exports have embarked on a new journey and are also facing new challenges. There are still issues with industry access, after-sales support, and capital turnover.
"Chinese independent brand cars have not yet gone overseas on a large scale, and service outlets have not been fully established, still in the stage of establishing a good reputation." Xu Haidong said that with the continuous expansion of second-hand car exports, if subsequent after-sales repair services cannot keep up, it will affect the reputation of Chinese independent brands overseas.
It is understood that some second-hand car export enterprises currently provide after-sales services by establishing overseas warehouses in large cities in major target market countries. "Establishing overseas warehouses can improve after-sales service issues to a certain extent, but due to the fact that the main body of second-hand car exports is mostly dealers and the variety of export models, it is also difficult for overseas warehouses to provide comprehensive after-sales maintenance services for various models." Xu Haidong said that after-sales support is the biggest challenge that second-hand car exports need to solve.
The Notice proposes to guide enterprises to build overseas maintenance service systems through self construction, resource sharing, or multi-channel cooperation, establish overseas after-sales service outlets, and ensure the supply of spare parts through multiple channels. Support automobile production enterprises to further improve their international marketing network, fully leverage their brand and channel advantages, and effectively improve the after-sales maintenance service level of self-produced cars overseas. Encourage eligible enterprises to establish public display and trading centers and overseas warehouses in key markets.
Capital turnover has always been a major bottleneck restricting the export of used cars. The payment cycle for second-hand car exports is generally long, and the financial pressure on enterprises is relatively severe.
In response, the tax bureau of Tianjin Dongjiang Comprehensive Bonded Zone has accelerated the progress of tax refunds by compressing the time for acceptance, approval, and invoicing processes, alleviating the financial pressure on enterprises. At present, the average processing time for Class I and Class II second-hand car export enterprises in eastern Xinjiang is about 3 working days, and the average processing time for all export enterprises can also be controlled within 6 working days.
Zhang Jianping stated that the export of second-hand cars involves multiple links and complex processes, involving quality control, standard certification, sales channels, and other aspects. It requires cooperation from all parties to gradually explore suitable commercial models for second-hand car exports in different countries. The new regulations issued by the five departments will play an important guiding and leading role in this exploration. "The export of second-hand cars from China is still in its early stages. We can learn from the successful experiences and practices of countries such as Japan and South Korea, and combine them with the characteristics of Chinese second-hand cars and the policies and regulations of exporting countries to form a better business model." Zhang Jianping said that Chinese second-hand cars not only need to "go out", but also "go in", and establish a good reputation overseas.
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