RIYADH: China has recorded a significant rise in the export of used cars over the last five years, a report in the People’s Daily Online showed.
According to the report, since the inception of a pilot program in 2019 aimed at exporting used automobiles, the number of vehicles dispatched from China witness a rise of over 250 percent in 2022 reaching 69,000 units, a substantial increase from approximately 15,000 units in the previous year. A substantial portion of these exports consists of new energy vehicles with Tianjin municipality, located in North China, being one of the pioneering cities for such exports.
Enterprises within Tianjin’s Dongjiang bonded zone successfully exported a variety of vehicles, including engineering and commercial vehicles, alongside traditional and new energy passenger cars. Currently, NEVs constitute over 70 percent of the zone’s total used car exports.
The market for China’s used cars has expanded globally, reaching more than 140 countries, 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 critical 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 Feb. 7 to expand used car export operations nationwide.
