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Liberty Times Net | Local Language | News | Nov. 18, 2025 | UndeterminedTrade Issues and Numbers

China's Ministry of Commerce has announced stricter supervision of used car exports to combat the practice of falsely declaring new, zero-mileage cars as used vehicles for overseas sale. This move responds to market distortions caused by dealers converting newly registered cars with no mileage into used cars to expand sales overseas amid weak domestic demand and excess production capacity.

Starting in 2026, exporters will be required to submit after-sales maintenance service information when applying for export approval within 180 days of a vehicle's registration. Local commerce authorities will also strengthen export permit issuance and compliance monitoring. The regulation aims to curb the export of zero-mileage used cars, which industry leaders say damages the reputation of Chinese automotive brands and creates price instability in foreign markets.

Zero-mileage used cars have surged since China allowed used car exports in 2019, rising from 3,036 units in 2019 to 436,000 in 2024, with about 90% being zero-mileage. These cars are popular in regions such as Central Asia, Russia, the Middle East, and Africa because they are sold cheaper but often lack after-sales service guarantees. Analysts warn the practice may foster long-term issues including price wars, quality concerns, and a trust crisis affecting the overall automotive industry.

The zero-mileage used car export model benefits from circumventing high certification standards for new car exports and obtaining up to 13% export tax rebates, creating an arbitrage opportunity for exporters. However, this approach threatens to undermine market order and product quality by encouraging manufacturers to prioritize sales volume over these factors.