China’s government says that there is a surplus of second-hand cars in the country. Its solution is to allow the export of some of these. What government controlled media does not make clear is where the cars will go.
According to the People’s Daily:
China has launched the export of second-hand cars in 10 regions including Beijing, Tianjin and Shanghai, according to a statement released by the Ministry of Commerce, The Beijing News reported Tuesday.
Guidelines were released in late April, which required sound inspection and after-sales services for second-hand cars which would be exported.
Data from China Automobile Dealers Association (CADA) showed that about 13.82 million used cars were traded in China last year, less than half the number of new vehicles sold. This figure means there is vast growth potential in the second-hand car market.
“The export of second-hand cars will not only unload excess inventory, but also stimulate consumption of new cars,” said Luo Lei, deputy secretary general of CADA.
Though it has a seemingly rosy future, the export market of second-hand cars still faces some problems including tax issues, different import policies, relatively weak competitiveness, and limited public recognition.