China’s automobile market has experienced significant growth in recent years, and the demand for both new and used cars has been on the rise. While the focus has primarily been on the domestic market, there is a new trend emerging – the export of used cars. This article explores the reasons behind the surge in used car exports from China, the regions involved, and the impact of policy measures and the booming new energy vehicle sector.
The Rise of Used Car Exports
In the first five months of this year, China witnessed a 60% increase in the export of used cars to overseas markets, with over 700 vehicles shipped to the Middle East, Central Asia, and Russia. This surge in demand can be attributed to several factors, including the expansion of the export list from 10 to 44 regions and the adoption of innovative marketing strategies such as livestreaming.
Chinese automobile companies, like China-Europe Auto City in Chengdu, have embraced livestreaming platforms as a means to capture the attention of potential buyers overseas. By showcasing the features and functions of used cars in real-time, livestreamers can increase visibility, engage with customers, and ultimately boost sales. This new format marketing strategy has proven to be successful in attracting buyers from global markets.
Policy Measures and Simplified Procedures
The growth in used car exports has been facilitated by policy measures aimed at streamlining transaction registrations, easing license applications, and simplifying Customs clearance procedures. These efforts have created an enabling environment for companies involved in the export of second-hand cars.
Cities such as Chengdu and Tianjin have been at the forefront of this trend, exporting thousands of used vehicles. Chengdu exported 4,380 vehicles, while Tianjin exported 5,200 in the first five months of this year. These cities have benefited from the simplified procedures, allowing them to quickly expand their businesses and meet the growing demand for used cars in overseas markets.
The Role of the New Energy Vehicle Sector
China’s booming new energy vehicle (NEV) sector has also played a significant role in the increase in used car exports. NEVs, which include electric and hybrid vehicles, are known for their advanced features, cost-effectiveness, and intelligent operating systems. Domestic consumers in China have embraced NEVs, leading to higher driving ranges, ultrafast charging, and smart operating systems.
Even when these NEVs are resold, they continue to be in high demand. Tianjin Cinko Vehicle Logistics Co Ltd, for instance, has rapidly expanded its business by focusing on the export of second-hand NEVs. The popularity of these vehicles among domestic consumers has translated into strong demand from overseas buyers.
Market Expansion and Opportunities
The surge in used car exports presents a significant opportunity for Chinese automobile dealers and exporters. With the list of regions permitted to export second-hand cars expanding, more companies are venturing into this market and witnessing fast-growing orders from global buyers.
In 2020, China exported approximately 40,000 units of used cars, a significant increase from the mere 3,036 units exported in 2019. This upward trend is expected to continue as the demand for affordable and reliable vehicles grows in overseas markets. Chinese automobile companies can leverage this opportunity to establish themselves as key players in the global used car market.
Challenges and Future Outlook
While the growth in used car exports is impressive, it has not been without its challenges. The COVID-19 pandemic, along with transport and logistics disruptions, has impacted the industry. However, the resilience and adaptability of Chinese automobile companies, combined with supportive policies and a robust NEV sector, have helped overcome these challenges.
Looking ahead, the future of used car exports from China appears promising. As more regions join the export list and the demand for NEVs continues to rise, Chinese automobile dealers and exporters have the potential to capture a significant share of the global used car market. Livestreaming platforms and innovative marketing strategies will continue to play a crucial role in attracting overseas buyers and driving sales.
The export of used cars from China is a growing trend that offers exciting opportunities for Chinese automobile dealers and exporters. With the expansion of the export list, simplified procedures, and the popularity of NEVs, the demand for used cars from global buyers is on the rise. Livestreaming platforms and innovative marketing strategies have proven to be effective in capturing the attention of overseas customers.
While challenges persist, such as the impact of the COVID-19 pandemic, the industry’s resilience and the support of favorable policies have enabled the growth of used car exports. As more regions join the export list and the demand for NEVs continues to soar, Chinese automobile companies are well-positioned to establish themselves as key players in the global used car market.
The future looks promising for the export of used cars from China, and this trend is expected to continue as the demand for affordable and reliable vehicles increases worldwide. Chinese automobile dealers and exporters can leverage this opportunity to expand their businesses and contribute to the country’s growing export industry.