China's second-hand car exports are still in the exploratory stage, and there are signs of a stampede after policy liberalization

Luo Lei, Assistant President of the China Automobile Distribution Association, has examined the current situation of China's automobile export market from a unique perspective. When introducing the experience of foreign second-hand car exports, he pointed out that in this century, Japan's second-hand car exports experienced rapid growth and slightly declined after reaching 1.4 million units in 2010.
The reason why Japanese second-hand car exports can quickly open up the international market is because they have a clear price advantage. The price of 7-year-old vehicles in Japan is basically zero, so many foreigners residing in Japan directly pick up cars from auction houses. That is to say, existing target country companies will search for car sources in the local second-hand car market in Japan. Data shows that among Japanese second-hand car export enterprises, overseas companies account for 70% to 80%. In China, most of the local enterprises are engaged in second-hand car export trade, and they actively go out on their own.

Luo Lei emphasized that China's second-hand car exports are still in the exploratory stage, and there are signs of a stampede after policy liberalization. Currently, many second-hand car traders focus their business on "parallel export vehicles", but this type of business is not the main direction of future industry development.