China Tightens Grip on Used Car Exports

According to Car News China, the Ministry of Commerce of China (MOFCOM) recently announced enhanced regulatory guidelines for the country’s used car export activities. This move aims to support the expansion of this business nationwide while maintaining orderly development.

CCTV News reports that MOFCOM spokesperson, He Yadong, stated the ministry will continue to coordinate with relevant parties following the February 2024 decision to expand used car exports nationwide. This decision also marked the end of the pilot phase of the program, which began in 2019.

He emphasized that the used car business is a global phenomenon, and cars are a significant commodity for both the Chinese and international markets.

Official data reveals that China exported 275,000 used cars in 2023, totaling approximately USD 6.88 billion in export value. In 2024, the country’s used car exports surged by 58.5%, reaching over 436,000 vehicles.

In China, used cars intended for export must comply with the WM/T 8-2022 standard (for passenger cars) or WM/T 9-2022 (for commercial vehicles and trailers). Each vehicle also needs to be inspected by a certified independent assessment organization, and exporters must submit corresponding inspection reports.

According to Car News China, Chinese exporters of used cars must also adhere to the import regulations of the destination market, including providing declarations of conformity when required. The authorities encourage the use of the national “Automobile Maintenance Electronic Health Record System” to verify each vehicle’s maintenance history.

These measures aim to standardize the export process and ensure that vehicles meet domestic and international technical requirements.

The new supervisory measures come as regulators and stakeholders address transparency issues in the domestic used car market, particularly with the rise of “0-kilometer used cars.”

These vehicles are often sold as used cars, typically at discounted prices, but they also help automakers and dealers avoid new car inventory statistics.

Chinese analysts attribute this phenomenon to prolonged overproduction and high inventory levels.

As of April, China’s inventory of passenger cars stood at 3.5 million units, while some automakers operated production lines at less than 50% capacity.

In May, MOFCOM held a meeting with automakers and used car platforms to discuss enhancing transaction supervision and establishing a potential legal framework to prevent data manipulation.

Industry experts suggest that a controlled expansion of used car exports could help address the current high inventory levels.

By mandating technical inspections and encouraging maintenance record verification, the new export policy also contributes to enhancing transparency and restoring market confidence in China’s used car industry.