[Industry Observation] From “Going Out” to “Going In”! An overview of the current status and future development prospects of China’s used car export industry in 2025

China’s used car exports have demonstrated impressive growth momentum and potential in recent years, particularly through 2025. This is the result of policy support, market drivers, and industry chain synergy.

Below, we will review key information on the used car export industry, combining current status with future prospects.

I. Export Status and Key Data in 2025
In 2025, China’s used car export industry is experiencing rapid growth and profound transformation.

1. Explosive Growth: China’s used car exports have grown from 3,036 vehicles in the initial pilot program in 2019 to over 400,000 vehicles in 2024, a more than 130-fold increase in five years. By the first half of 2025, exports had exceeded 1 million vehicles, continuing the rapid growth momentum.
2. Broad Coverage: Export markets have expanded from a few regions in the early days to over 160 countries and regions worldwide, encompassing Southeast Asia, the Middle East, Africa, Central Asia, Eastern Europe, and South America.
3. Increased Proportion of New Energy Vehicles: The proportion of new energy vehicle exports has increased significantly. By 2024, the proportion of new energy vehicle exports reached 58%, and in the first half of 2025, the growth rate of plug-in hybrid vehicles reached 210%.
4. Increased Export Value: In the first half of 2025, total exports reached US$3.8 billion, a year-on-year increase of 41%. The price premium for each vehicle is significant. For example, a new energy vehicle that costs 70,000 yuan in China can be sold for 36,000 US dollars (about 250,000 RMB) overseas, with a profit margin that is twice that of China.

The following are some core data on China’s used car exports in the first half of 2025:

2. Main target markets and patterns

China’s used car export market presents a diversified layout:

1. Traditional and emerging markets: Central Asia (such as Russia and Kazakhstan) and the Middle East (such as the UAE) are still important markets. At the same time, emerging markets such as Southeast Asia (such as Vietnam and Laos) and Africa (such as Nigeria and Ethiopia) are growing rapidly.
2. Differences in market preferences: Different markets have different preferences for vehicle models and energy types:

(1) Central Asia and the Middle East: There is demand for both economical fuel vehicles and new energy vehicles.

(2) Africa: There is a large demand for affordable fuel vehicles, of which pickup trucks/light trucks require more than 100,000 units per year. At the same time, new energy vehicles are also showing a growth trend in the African market.

(3) Southeast Asia: Japanese high-value models are more popular.

(4) Some markets in Europe and South America: There is a strong demand for new energy vehicles, especially plug-in hybrid models.

III. Core Drivers of Development

The industry’s rapid growth is primarily due to the following factors:

1. Strong Policy Support: Since the pilot program launched in 2019, policies have continued to empower the industry. Applications for used car export qualifications will be fully liberalized in March 2024, and 30 provinces and cities across China have introduced supporting plans. Local governments are also actively optimizing customs clearance processes (for example, reducing tax refunds to three days with “immediate review upon application”) and offering tax incentives.
2. Alignment of Industry Advantages with Demand: China’s vehicle fleet of over 400 million provides an ample supply of vehicles. Chinese used cars, with their high cost-effectiveness, meet the needs of consumers in many emerging markets.
3. Business Model Innovation and Ecosystem Development: The industry is actively building a comprehensive service system encompassing “inspection, logistics, and after-sales service.”
4. Vehicle Standardization: The industry is striving to transform non-standard used vehicles into standardized ones, for example, through a “four similarities” strategy of “same year, same mileage, same condition, and same price” to enhance market trust.
5. “Group Expansion”: Companies are integrating resources and jointly expanding into the market by establishing “vehicle sourcing working groups,” deploying overseas forward warehouses, and establishing direct sales networks.
6. Digital Empowerment: The application of AI valuation systems and digital marketing (such as live streaming) has improved operational efficiency and market transparency.

IV. Challenges and Bottlenecks

Despite rapid development, the industry still faces several challenges:

1. International logistics bottlenecks: Limited ro-ro shipping capacity, special safety restrictions for transporting new energy vehicles, and vehicle age requirements in some markets all drive up logistics costs.
2. Overseas compliance and adaptation risks: Significant differences in policies and regulations between countries (such as certification barriers like WVTA and COC), varying technical standards (for example, vehicle-mounted systems and connected vehicle systems may not be usable in the exporting country), and the risk of policy changes in target markets (such as tariff adjustments).
3. Building a comprehensive after-sales service system: Establishing a comprehensive after-sales repair network and parts supply system in target markets is a major challenge. If a vehicle problem arises, remote technical support is costly and communication is difficult.
4. Shortage of specialized talent: The industry urgently needs multi-skilled individuals who possess both automotive technology and international trade expertise, as well as language proficiency.

V. Future Trends and Outlook

The future development of China’s used car exports is likely to show the following trends:

1. From “Quantity Increase” to “Quality Improvement,” Brand Development: The industry will shift from pursuing quantitative growth to placing greater emphasis on quality, reputation, and brand building. Establishing a credit rating system, providing reliable after-sales service, and building an international brand image for “Chinese used cars” will be key.
2. Continuous Increase in the Share of New Energy Vehicles: With the increase in domestic new energy vehicle ownership and the global low-carbon transition, the export share of new energy used cars is expected to further increase.
3. Deepening and Diversifying Regional Markets: While consolidating existing markets, companies will continue to expand into emerging markets such as Africa, Central Asia, and South America.
4. Localized Operations and Global Ecosystem Expansion: More companies will move beyond simply trading vehicles and are committed to establishing localized after-sales service systems, deploying overseas warehouses, and even exploring deeper collaboration models such as knock-down (CKD)/SKD (Knockdown) assembly, achieving “global ecosystem expansion.”
5. Digitalization and Green Collaboration: Technologies such as blockchain are likely to be more widely used for vehicle traceability and enhance trust. At the same time, the green and low-carbon attributes of export products will become increasingly important.

Summary

Overall, China’s used car export industry will be enormous and rapidly growing by 2025, with a diversified market and a growing share of new energy vehicles. However, it also faces challenges in logistics, compliance, after-sales service, and talent. Going forward, the industry will prioritize quality improvement, brand building, new energy transition, market deepening, and localized operations.

China’s used car exports are gradually shifting from simple trade exports to the development of a complete cross-border ecosystem encompassing vehicle sourcing, logistics, finance, and after-sales service, striving to achieve a qualitative shift from “going global” to “going domestically.”