Parallel exits are creeping in

Domestic consumers are no strangers to parallel imports of cars, every year a considerable part of the domestic imported cars are introduced by non-manufacturer authorized dealers, these cars are mostly sports cars, off-road vehicles and other niche models, to meet the needs of some domestic consumers chasing individuality.

The parallel export that Li wants to mention is somewhat similar to parallel import, which is also dominated by non-manufacturer authorized dealers. However, different from the export of new cars led by automobile manufacturers, although the source of parallel exports is also a new car, the model is used in the domestic license, and then exported to overseas markets in the name of used cars.

The reason for this is that unauthorised car dealers are unable to export new cars. According to relevant policies and regulations, China implements export qualification management for automobiles, and automobile production enterprises that meet the requirements can apply for export qualification to the Ministry of Commerce. If a company is not an automobile manufacturer and wants to export automobiles, it must obtain authorization from an automobile manufacturer with export qualification.

In China, the export of used cars, which had been banned for a long time, began to start after 2019. In 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 2019, the three departments jointly held a special meeting on the export of used cars to officially launch the export of used cars.

Nowadays, second-hand car export qualifications are not scarce. According to statistics, as of August this year, the country's second-hand car export business covers 27 provinces (autonomous regions and municipalities directly under the central government), and there are more than 400 second-hand car export pilot enterprises.



Selling new cars through the export of used cars is not complicated. Only need the car dealer or private first in the domestic authorized dealers to buy a new car, and then sell to the enterprise with the qualification of second-hand car export, and then by the second-hand car export enterprise to handle the export formalities, complete the Chinese customs export clearance, foreign customs import entry, and finally can be sold overseas.

Why in the export of used cars, commercial vehicles are mostly genuine used cars, while many passenger cars are new cars? In this regard, Zhang Tingting said that China's commercial vehicles, including after-sales maintenance and other types of costs are relatively low, compared with Japan and South Korea and other countries of used commercial vehicles have advantages, and used passenger cars do not have such favorable conditions for the time being.