Facing intense market competition and mounting inventory pressure, Chinese authorities have moved to regulate the export of “zero-kilometer used cars” – vehicles registered as sold domestically before being immediately shipped overseas as pre-owned inventory. The policy intervention comes as manufacturers sought unconventional channels to address production-surplus challenges.
On November 14, four key regulatory bodies – the Ministry of Commerce, Ministry of Industry and Information Technology, Ministry of Public Security, and the General Administration of Customs – jointly issued strengthened management guidelines for used car exports. The new framework, scheduled to take effect January 1 next year with an interim adaptation period, aims to standardize export practices that have developed amid China’s rapidly expanding automotive sector.
The zero-kilometer used car phenomenon emerged as dozens of automakers, nurtured through government industrial policy, engaged in fierce competition. With production consistently outstripping domestic consumption in recent years, manufacturers turned to export channels to relieve inventory pressures. Official statistics from the China Association of Automobile Manufacturers show production and sales both exceeded 27.6 million units during January-October this year, representing double-digit growth. New energy vehicles accounted for approximately 1.3 million units of this total.
Industry observers note these specially categorized vehicles initially provided an effective channel for reducing inventory, with exports surging from 15,000 units in 2021 to 436,000 last year, and projected to surpass 500,000 this year. However, no official tracking mechanism currently monitors such exports specifically.
A significant concern driving regulatory action involves after-sales service limitations. These exports typically lack proper warranty support and service networks, potentially generating consumer complaints that could damage brand reputation and China’s automotive industry image internationally. Industry rumors had circulated for months anticipating government countermeasures.
Rather than implementing an outright ban, the new policy significantly tightens export requirements, mandating automaker authorization for zero-kilometer used car shipments. As Li Huai, CEO of Highsunche Technology, explained to Caixin, “This practice represents destructive competition born from survival pressure. When production volume becomes the primary market indicator, manufacturers face limited options beyond increasing output.”
The measures reflect China’s broader effort to balance industrial growth with sustainable development, ensuring the international expansion of its automotive industry maintains quality standards and brand integrity.
Partner with a Fully Authorized Exporter
As regulations on used car exports tighten to ensure quality and compliance, choosing the right partner is more important than ever. Ichelabamotor (ichelaba) stands out as a premier automotive export trading company in China, possessing official export authorizations for a select range of passenger, commercial, and modified vehicles.
We are proud to offer authorized export solutions for:
- Changan Passenger Vehicles: Including Changan Gravity (Yinli), Changan Qiyuan (NEVO), and Changan Deepal (Shenlan).
- Commercial Vehicles: Leading brands such as Iveco and Foton.
- Specialized & Modified Vehicles.
If you are looking for a reliable, compliant, and professional partner for your automotive needs, please do not hesitate to contact us!
