China Used Car Export

In 2019, with the introduction of the first batch of second-hand car export pilot lists, China second-hand car exports ushered in new opportunities. After July, with the fierce “first order in the country” dispute, many domestic companies that have obtained second-hand car export qualifications have successively completed their first export orders. At present, China’s used car exports face many opportunities. Developing second-hand car export business is an inevitable choice for the development of China’s auto industry to the current stage. The strong demand from overseas markets, especially the countries along the “Belt and Road”, has also provided it with ample space. With the gradual improvement of the used car export policy and market system, it is expected that the scale of China’s used car exports will continue to expand.
China’s used car exports are the trend of the development of the automotive industry
On the one hand, the export of second-hand cars will accelerate the circulation of domestic second-hand cars, revitalize the domestic auto market, and ease the pressure on domestic environmental protection; on the other hand, it will promote the development of foreign trade. The industry believes that launching second-hand car export business is an inevitable choice for the development of China’s auto industry to the current stage. It is to promote the structural transformation and upgrading of the auto industry, deepen economic and trade exchanges with countries along the “Belt and Road”, promote high-quality foreign trade development, and accelerate domestic old The important measures for the circulation of old cars to alleviate environmental pressures are also an important way to stimulate the vitality of the domestic automobile consumer market and promote the healthy development of the automobile industry.
In terms of the domestic market, the global consumer consulting company McKinsey released the 2019 Auto Consumer Insight Report on October 23 that the current second-hand car market in China is poised for growth. The acceptance of the second car has gradually improved, and low-cost, high cost-performance cognition has gradually become popular, and the market potential cannot be ignored. According to data released by the China Automobile Dealers Association, from January to August 2019, the cumulative transaction volume of used cars nationwide was 927.3 units, an increase of 3.89% year-on-year; the transaction value was 588 billion yuan, an increase of 5.42% year-on-year.
The export of second-hand cars is also the current trend of the development of China’s auto industry. At present, there are sufficient domestic vehicle sources and large inventories, while domestic demand can only absorb part of them, and there are urgent export requirements. Xu Haidong, assistant secretary-general of the China Automobile Industry Association, pointed out that China’s auto sales have been the world’s first for 10 consecutive years. In the first half of 2019, the country’s car ownership reached 250 million. Under such a car stock, the export of second-hand cars is a direction and a trend.
According to statistics from the China Automobile Dealers Association, in 2018 China’s used car transaction volume reached 13.82 million units, only about half of the new car sales (28.08 million units). However, from the perspective of the development of second-hand cars in developed countries, the transaction volume of second-hand cars is twice that of new cars, and the export volume of second-hand cars is 10% of second-hand car transactions. If the calculation is based on the development of used cars in developed countries, China’s used cars will be exported more than 1 million units per year. If the average price is 60,000 yuan per vehicle, the value of used car exports may reach 60 billion yuan.
“Releasing used car exports is an important way to revitalize the country’s memory and also help drive new car sales.
Yang Jirui, president of the Chinese Consumer Economics Association, also said: “At present, China’s autos are in a relatively significant period of upgrading. The second-hand car export business is just in time.” In his view, second-hand car exports help to be active. The transaction of second-hand cars greatly increases the frequency of second-hand car circulation; it helps to further consolidate car consumption and promote the upgrading of car consumption.
Broad market potential for used car exports overseas
On the demand side, the international market has a strong demand for second-hand car imports, especially in some less developed countries. Most of the less developed countries in the world have a huge demand for used cars. These countries often do not have a car industry themselves and rely heavily on imports. As the second largest country in terms of car ownership in the world, China has abundant sources of used cars for overseas consumers to choose from.
Among them, the countries and regions along the “Belt and Road” have strong demand for cost-effective vehicles, and automobile consumption continues to grow.
“The 40 vehicles we exported for the first time are a stepping stone to opening the used car market in Cambodia, Southeast Asia and other countries.” A comprehensive survey of the Cambodian market found that consumers in this country have a very high demand for used cars. At present, most domestic cars in Cambodia depend on imports. Among them, 95% are used car imports, and only 5% are new car imports.
The main markets are the countries along the “Belt and Road”. “In the countries and regions along the“ Belt and Road ”, the number of people with thousands of cars is low and the demand for cost-effective second-hand cars is strong. Despite the low purchasing power, automobile consumption is still growing. In particular, there is a large consumption space for used cars under $ 2,000 in these regions. “The largest market is Africa, and the target market is mainly Nigeria. Nigeria imports 410,000 cars per year, of which 74% are used cars and about 300,000.
In terms of emission standards and prices, China’s used car exports have certain advantages in some overseas markets. At present, the world ’s left-hand-drive cars account for the majority, and more and more left-hand-drive cars have gradually banned the import of right-hand drive cars. Therefore, China ’s used car market has a large market space.
“At present, the average age of second-hand cars in Cambodia is 16-18 years, and the average sales price is 20,000 US dollars per unit. The past models exported this time are within 10 years. It is very competitive in terms of overall cost performance. “
At the same time, China currently implements the “National Six” emission standard, which is recognized in the industry as one of the strictest standards in the world for controlling emissions of automotive pollutants. Guo Zheng, director of the China Automotive Strategic Development Research Center of Tianjin University, said that, for example, the “National Three” emission standards for cars are no longer available in the country, but in some countries, these vehicles are even higher than their local emission standards, combined with price advantages, Chinese used cars are more attractive in countries along the “Belt and Road”.
I am confident in the long-term development of the used car export business. In the future, Uxin will expand its business coverage and continue to develop overseas sales channels.
“In the future, the used car export market has broad prospects and great potential for development. We hope that with the convenient logistics export of China-Europe Railway, we will radiate our business to Southeast Asia and Russia in important markets for used cars, and even land and sea transport will reach Africa . “
Although China’s second-hand car exports still face many difficulties and constraints, with the establishment of the second-hand car export system and the formation of large-scale exports, the proportion of second-hand car exports will inevitably increase significantly, and will play a very important role in domestic automobile circulation. Support role.
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