China Attacking the global used vehicle market
With the launch of a used car loading platform on November 22, 2024, China is poised to capture the high-end used car market in Africa and South America. Relegating Europe to second place.
The announcement was made by the Global Times website. On November 22, 2024, a port dedicated to the export of used cars opened its doors in Shanghai.
China's used car export is a new but rapidly developing business in China, having only started five years ago. In 2019, in order to promote high-quality development of foreign trade and stimulate the domestic automotive consumer market, the Ministry of Commerce, the General Administration of Customs and the Ministry of Public Security jointly launched a nationwide pilot program for the export of used cars1
It is simply following the example of Japan, where the constant renewal of models is bringing hundreds of thousands of used vehicles onto the market, leading manufacturers to set up export chains for second-hand vehicles several years ago.
According to data from the Ministry of Commerce, no more than 275,000 vehicles were exported in 2023 - a figure that nonetheless stands at around $6.9 billion. This market is set to surge with the arrival in force of electric vehicles. They are taking the place of traditional vehicles, which will continue to run for a long time to come
(At present, top-of-the-range cars sell for around $25,000 each, according to the year's figures.) As a result, the number of service providers in China offering turnkey overhauled vehicles to customers overseas in Africa and South America is on the rise. One of the main operators, Zhuzhou Yitongda, claims to distribute them in over a hundred countries to importers, second-hand dealers and even private on-line buyers.
Like its Chinese competitors, it offers a comprehensive service with full guarantees. Cars are serviced for appearance, interior trim and safety. The vehicles comply with environmental protection standards and the technical specifications required by the destination countries. Naturally, all export procedures, customs duties and certification2 are taken care of.
This is a market derived from the electric vehicle market, in which China is set to take a dominant position. A global market in which Europe, now marginal, is likely to rank second at best.
(1) China's first port-based used car export service center opens in Shanghai, Global Times 22/11/2024
(2) One-Stop Used Cars Trade Export Supporting Services, hnucar.com, 04/12/2024
