The export of used cars is entering an era of “strict regulation”.

To strengthen the standardized management of the rapidly growing used car export business, the Ministry of Commerce and three other departments recently jointly issued a notice imposing strict management requirements on vehicles registered for less than 180 days, while also establishing a two-year transition period to guide the industry to form a healthier and more orderly long-term mechanism.

1，Policy Background: Curbing the Export of “Zero-Kilometer Used Cars”

While the scale of used car exports continues to expand, the phenomenon of “new cars masquerading as used cars” is also on the rise.

Some companies export newly registered, virtually unused vehicles as used cars, creating so-called “zero-kilometer used cars.”

Data shows that in 2024, approximately one in eight used cars exported from my country fell into this category of nearly new cars, disrupting market order.

The root cause of this practice lies in the fact that new car exports require higher standards of certification and after-sales service, while used car exports have lower barriers to entry and significantly reduced costs. The new regulations aim to address these issues structurally.

2，key changes: Vehicles registered less than 180 days ago will be subject to stricter supervision.

According to the notice, vehicles registered less than 180 days ago, if intended for export as used cars, must obtain an “After-Sales Service Confirmation Letter” issued and stamped with the official seal of the vehicle manufacturer.

The confirmation letter must clearly state that vehicles for which core information such as the responsible entity for after-sales service in the destination country cannot be provided will not be issued an export license.

This requirement will effectively limit the gray area of ​​”short-term registration and export of new cars” and bring related vehicle export activities back to a standardized track.

Policy Structure: Three Untouchable Regulatory Red Lines

1. Time Limit: Vehicles registered within the 180-day timeframe but less than 180 days after registration are subject to key monitoring.

Export procedures will not be processed if after-sales confirmation documents from the manufacturer cannot be provided.

2. Responsibility Limit: The policy clearly requires traceable after-sales service, returning the after-sales guarantee responsibility chain to the manufacturer. The past practice of “selling and forgetting” in the export process will be unsustainable, and the boundary of responsibility between exporting companies and OEMs will be further clarified.
3. Compliance Limit: A comprehensive regulatory system will be implemented, strengthening export license management, establishing a negative list for companies, and strictly investigating and punishing fake modifications and false declarations. This forms a full-chain regulatory system from vehicle registration to after-sales guarantee, significantly increasing the cost of violations.

Impact on various stakeholders in the industry and recommendations

1. Opportunities for OEMs (Original Equipment Manufacturers) to Restructure Channels: OEMs can leverage the new regulations to bring export channels back into the official system, strengthening their brand’s export dominance.

Accelerating the Construction of Overseas After-Sales Systems: This includes establishing parts centers, improving repair service networks, and training local technicians to support the issuance of “After-Sales Repair Service Confirmation Certificates.”

Promoting Brand Globalization: The policy will drive OEMs to shift from simple product competition to systematic and service-oriented competition.

2. Urgent Need for Used Car Export Companies to Adjust Business Models: They need to promptly shift from exporting “nearly new cars” to using genuine used car resources with a lifespan.

Strengthening Collaboration with OEMs: Establishing compliant cooperative relationships with manufacturers through authorization, cooperation, or service outsourcing.

Enhancing Comprehensive Service Capabilities: Actively participating in the construction of overseas showrooms and delivery centers and one-stop service systems to improve business stability and competitive barriers.

These new regulations mark a new stage in the stricter and more systematic management of my country’s used car exports.

The policy aims not only to curb irregularities but also to promote improved service capabilities and the establishment of a healthy market order among all parties in the industry chain.

In the future, as the regulatory system becomes more comprehensive, the used car export industry will shift from extensive growth to quality-oriented and brand-driven development, further enhancing its overall competitiveness.