After six years of intensive cultivation, China’s used car export industry is now setting sail for global expansion. Since the launch of the used car export pilot program in 2019, China’s used car industry has moved from a “testing the waters” phase to a new phase of quality improvement and expansion. Exports have increased by nearly 50% in the past two years, with a network covering over 160 countries and regions worldwide, including Europe, America, the Middle East, and Africa, making it a thriving new force in the global distribution system.
The “2025 China Used Car Export Ecosystem Conference,” themed “Guangzhou Connects the World, Connecting All Regions,” was recently held in Guangzhou. Sponsored by the China Automobile Dealers Association and co-organized by Beijing Shenzhou Car Rental Co., Ltd. and Guangzhou State-owned Assets Smart City Services Co., Ltd., the conference was held recently.
At the conference, the “government, industry, business, and research” community forged consensus, integrated resources, and pursued joint development. The most notable event was the establishment of the Used Car Institutional Vehicle Source Working Group of the Used Car Export Branch of the China Automobile Dealers Association. This marks the beginning of a phase in which my country’s used car exports are driven by quantitative changes driving qualitative change, ushering in an era of long-distance used cars.
Achieve an ecological transition from “product export” to “system export”
Since the pilot program launched in 2019, my country’s used car export industry has undergone a critical period of institutional improvement and experience accumulation. Under policy guidance, export companies have actively explored innovative models, established standardized systems, and expanded global channels, successfully transitioning from regional pilot programs to a global presence.
The industry has now officially left its exploratory phase and entered a new phase of large-scale operations, systematic output, and sustainable development. China’s used car competitiveness in the global market has substantially improved.
Luo Lei, Vice President of the China Automobile Dealers Association, believes that long-distance used cars are the key to unlocking the global market, and my country possesses an extremely abundant supply of long-distance used cars.
With the in-depth development of the auto market, travel platforms, leasing companies, and financial institutions have accumulated a vast supply of high-quality vehicles. These include the mass retirement of operating vehicles by leasing companies, the large-scale iteration of compliant ride-hailing services by travel platforms, vehicle repurchases by financial institutions, the systematic release of foreclosed vehicles, and the concentrated withdrawal of test-drive vehicles from OEMs. Together, these create a rich mine of institutional vehicles that can be deeply mined.
To this end, the association will take the lead in promoting the construction of an institutional vehicle procurement platform. By achieving direct connection between “export enterprises and vehicle source institutions”, it will greatly reduce the cost of intermediate links and solve the problem of vehicle source integration from the source.
Luo Lei pointed out that promoting high-quality development in used car exports requires building a comprehensive ecosystem, transitioning from “product exports” to “system expansion.” This includes coordinating parts exports, establishing an overseas warehouse and parts supply chain network covering major markets, and exporting consumable parts and repair kits to fundamentally reduce overseas after-sales costs. Furthermore, the company will collaborate with high-quality domestic repair companies to expand overseas, establish more service outlets in target markets, and build localized service capabilities. Furthermore, the company will strengthen the technical capabilities of overseas partners, provide remote diagnostic support and systematic training, and enhance end-user service levels. Furthermore, the company will establish a closed ecosystem encompassing vehicle sales, parts supply, and service assurance, comprehensively enhancing the overseas brand credibility of Chinese used cars and fostering sustainable profit growth.
He emphasized that China’s used car exports are more than just a simple trade transaction; rather, they are a critical link in the internationalization of the automotive industry chain. Only by establishing a comprehensive closed ecosystem encompassing vehicle source integration, cross-border logistics, financial services, overseas after-sales service, and data tracking can Chinese used cars truly become a global brand.
The global reputation of “Chinese used cars” is becoming increasingly prominent
China’s used car exports will exceed 400,000 units in 2024, with export destinations expanding from traditional Southeast Asia and Africa to the Middle East, Latin America, and some emerging markets in Europe. The global reputation of “Chinese used cars” is becoming increasingly prominent.
These figures reflect the release of favorable policy dividends, the improvement of industrial chain capabilities, and the global market’s recognition of the “high cost-effectiveness” of Chinese cars.
Huang Ruoyu, Chairman of the Used Car Export Branch of the China Automobile Dealers Association, explained that China’s used car exports were only 4,300 in 2020, but by the first half of 2025, they had exceeded 1 million.
In just six years, exports have increased 232-fold. In 2022, the main market for used car exports will shift to countries participating in the Belt and Road Initiative, while the Greek market will also rise. In 2023, Southeast Asia will become the largest market for my country’s used car exports.
In 2024, the qualification review system for used car export companies will be fully liberalized nationwide. The number of used car export companies will surge from 47 to 3,000, and the customs clearance period will be shortened by 40%.
This year, over 50% of my country’s used car exports went to Southeast Asia, with plug-in hybrid models experiencing explosive growth, reaching a 210% growth rate.
“As the saying goes, new cars dominate the market, while used cars stabilize the market. The best test of a product lies not only in the sales volume of new cars in overseas markets, but also in how well used cars can be integrated into local markets,” he said.
As a major player in China’s used car exports, since last year, CAR Inc. has gradually established 29 domestic used car central warehouses, five port-based forward warehouses, and six overseas direct sales offices, bringing its 4,000 vehicles for sale to over 30 countries across the Middle East, Central Asia, North Africa, West Africa, and Latin America.
CAR Inc. CEO Gao Dewu stated that a reliable vehicle supply is the foundation of the ecosystem, and transparent information is the bridge of trust. CAR Inc. is committed to building and enhancing its full-chain capabilities: “high-standard pre-sale vehicle preparation, global logistics during sales, and localized after-sales support.” This aims to establish an efficient and reliable cross-border service system for China’s used car exports, including new energy vehicles, and help partners enhance their global competitiveness. The global competitiveness of China’s used car industry needs to shift from “price advantage” to “brand trust.” This demonstrates that the second half of the used car export process is about “selling the ecosystem.”
“Only by building a complete ecosystem from procurement, testing, logistics to after-sales service, truly breaking down the silos in the industrial chain and forming a synergistic force, can Chinese used cars go far and gain a foothold in the global market,” said Gao Dewu.
Business opportunities for exporting used cars in bulk overseas have emerged
In the view of Li Jia, Vice President of China Auto Rental, sustainable international trade is never a one-off transaction or a highly profitable industry. Instead, it’s about professionals earning reasonable profits in a healthy and sustainable manner.
He proposed that China’s used car exports need to overcome three major hurdles: expertise, trust, and scale to establish an international competitive advantage.
The expertise hurdle requires exporters to clearly define their chosen model and the role they play in international trade. The trust hurdle involves answering the four most pressing customer concerns: availability of vehicles, vehicle condition, after-sales service, and acceptance of credit terms or consignment. This requires a process of “breaking the ice with overseas prototypes, testing the waters with small transactions, and building trust through repeat purchases.” The scale hurdle requires employing international trade strategies to achieve scale breakthroughs, as individual orders are unlikely to become a success.
Based on over a year of experience expanding overseas, Li Jia outlined three key approaches: First, proactively “going global,” establishing a direct sales network in six key countries through forward warehouses at ports, overseas warehouses, and overseas offices, covering over 30 neighboring countries. Second, integrating resources by establishing a “vehicle sourcing working group” with domestic institutional vehicle suppliers to share overseas business opportunities and improve matching efficiency. Third, focusing on “quasi-standard products,” promoting the transition of non-standard used vehicles to standardized models through a “four similarities” strategy—same year, same mileage, same condition, and same price—to enhance market trust.
He called on institutional vehicle suppliers, logistics companies, after-sales service providers, and other supporting enterprises to work together to elevate China’s long-distance used vehicle exports to a new level, following the path of “institutional vehicle suppliers leading the way, supporting services following suit, and trading platforms expanding overseas.”
Li Jia stated that the goal of pooling institutional vehicle sources is to reduce price negotiations based on individual vehicle conditions, maximize the standardization of used cars, and improve export efficiency. Therefore, member institutions should achieve annual domestic sales of at least 2,000 used cars and be able to simultaneously source at least 200 vehicles with the same “four similarities.” Member institutions will benefit from the working group’s direct access to overseas sales opportunities and transaction assistance, as well as access to global end-to-end resources after the sale, including licensing, customs clearance, logistics and insurance, overseas warehouses, and terminal delivery.
In addition, for after-sales service, the working group will pool resources and collaborate with upstream and downstream partners in the export industry chain to jointly build an overseas after-sales service network, including repair and extended warranty services.
To prepare for a critical period for Chinese used cars to enhance their competitiveness in the global market, the Used Car Institutional Vehicle Source Working Group of the Used Car Export Branch of the China Automobile Dealers Association has issued four initiatives to the industry:
First, high quality and low prices, exporting quality products overseas. Together, we will promote the high-quality, intelligent, and large-scale export of Chinese used cars overseas, allowing consumers around the world to enjoy the economic dividends and excellent experiences brought by the booming Chinese auto industry.
Second, product standards and convenient transactions. We bring together leading domestic used car sourcing partners, leveraging the standardized advantages of “four similarities” in vehicle sourcing. Third, vehicle conditions are transparent and honest.
The true condition of vehicles must be unambiguous, without concealment or omission. We actively collaborate with the destination country’s government, customs, and testing and certification agencies to ensure that vehicles fully comply with local entry policies and technical standards.
Fourth, reliable service and sustainable operations. We bring together leading companies from all upstream and downstream links of China’s used car export industry chain to build an export support service system, alleviating concerns among overseas dealers and consumers about purchasing and using Chinese used cars.
We aim to build a positive reputation, encourage repeat purchases, resolutely eliminate short-term profit-seeking behavior, and ensure the long-term sustainability of our export business.
