China Moves to Curb Exports of 500,000 '0km Used Cars'
China has decided to put the brakes on the export of '0km used cars,' which have increased amid excessive production by automakers.
According to Chinese media outlets such as Caixin on the 16th, the Ministry of Commerce, Ministry of Industry and Information Technology, Ministry of Public Security, and the General Administration of Customs of China announced on the 14th a “Notice on Strengthening the Management of Used Car Exports.”
The new policy does not completely ban the export of 0km used cars, but it imposes much stricter conditions. Exporters must obtain consent from the car manufacturer and are now required to provide network information to ensure after-sales services. The new rules will take effect on January 1 of next year, with a one-and-a-half-month grace period for the industry. A 0km used car is essentially a new vehicle that, after going through a formal registration process upon delivery, is immediately sold as a used car.
This measure was taken because the production volume of new cars by dozens of brands has far surpassed domestic demand in China, leading to overproduction. According to the China Association of Automobile Manufacturers, from January to October this year, China produced 27,692,000 vehicles and sold 27,687,000 vehicles, both figures increasing by more than 10% compared to the previous year. Among these, production of new energy vehicles-including electric and hydrogen-powered cars-reached 13,015,000 units, with sales at 12,943,000 units.
Additionally, since 0km used cars do not come with after-sales service like new cars, this has been seen as a factor that could negatively impact the reputation of the Chinese auto industry.
Meanwhile, in this context, exports of 0km used cars surged from 15,000 units in 2021 to 436,000 units last year, and some analyses predict the figure will exceed 500,000 units this year.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
