New-energy passenger vehicles occupy the mainstream

On December 6, the Ministry of Commerce, the Ministry of Public Security and the General Administration of Customs issued the Notice on Further Expanding the Regional Scope of Second-hand Car Export Business (hereinafter referred to as the Notice). According to the circular, in order to actively and orderly expand the export of second-hand cars and promote the stability and quality of foreign trade, it has decided to expand the export of second-hand cars in Liaoning and Fujian provinces.
China's used car export business started in 2019. At the end of April 2019, the Ministry of Commerce, the Ministry of Public Security and the General Administration of Customs jointly issued the Notice on Supporting the Export Business of Used Cars in mature Areas. In May, the above three departments jointly held a special meeting to officially start the second-hand car export work.

Luo Lei, deputy secretary-general of China Automobile Dealers Association, introduced to Economic Observer network reporters that after several years of exploration, the structure and power types of China's used vehicle exports have changed.

"In 2019 and 2020, the export of passenger vehicles, especially fuel passenger vehicles, does not have much price advantage in the international market, so the volume is not very large. On the contrary, commercial vehicles have obvious advantages in durability and price, so it is mainly commercial vehicles." This year, things have changed, says Mr Luo. Because most export target countries have higher tariffs on fuel vehicles, in the field of passenger vehicles, the export of new energy vehicles has become a breakthrough, so the export of passenger vehicles this year has accounted for the mainstream, and 90% of passenger vehicles are new energy vehicles.

Data from the Ministry of Commerce showed that by September 2021, China had exported 14,000 used cars worth more than 100 million US dollars to 102 countries and regions around the world. In addition, according to the China Automobile Dealers Association, China's used car export exceeded 16,000 units in the first half of this year. Combined with data from the fourth quarter of 2021 and July-November of this year, China's used car exports are estimated at around 40,000 units.

At the same time, the average unit price of used cars exported from China has also increased significantly, from less than $5,000 in 2019 to nearly $15,000 in 2021.

With the increase in competitiveness due to the change in the power type of vehicles exported, the increase in the unit price and the increase in the volume of exports, some export companies have started to make profits. This is a positive sign for the industry as a whole.

"The government authorities also want to expand the scale and include more areas in the pilot program. The general trend in the future will be market-oriented." Luo Lei believes, "The scale of our used car export is still relatively small, if the whole service system can not be established, it will affect our international competitiveness. So start with small, fast runs, and try to spin. Slowly encouraging some companies to set up the whole system overseas. This system does not have to be built by ourselves, but can also rely on foreign channels to link up. While using foreign distribution systems to export our used cars, we set up our own system. It will save time and effort, and it will be faster."