When the familiar parallel imported cars are put on the 'emperor's new clothes', they become 'parallel export cars'.
While my country's new car exports have repeatedly hit new highs, the export volume of used cars has also increased significantly, from 15,000 in 2021 to 69,000 in 2022. Among them, the 'parallel export car' contributed a lot, and its sales contribution even exceeded that of Gen Zhengmiaohong's second-hand car.
The 'parallel export' model is unsustainable
The so-called 'parallel export of cars' refers to exporting domestic new cars, especially new energy new cars, to foreign countries in the form of second-hand cars. Due to the high configuration and low price of domestic new energy vehicles, they have certain advantages in the international market. Therefore, last year, many second-hand car export companies took 'parallel export' of new energy vehicles as their main direction of attack. However, while this model has been followed, it has also been criticized a lot.
Yang Jun, deputy general manager of Zhejiang Jishuai Import and Export Trade Co., Ltd., said bluntly that the rush of 'parallel exports' can only be a short-term behavior. At present, the export of second-hand cars is in its infancy. Due to the fierce competition, some unhealthy trends will inevitably appear. 'If this situation cannot be improved, the hard-won market and the trust accumulated by overseas customers will be damaged.' He said, 'It is normal to pay trial and error costs, but the general direction of industry development should be healthy and orderly development. The international market is huge, and we should return to the right path of second-hand car export business.”
Wang Xiangyu, founder and CEO of Yiwei New Energy Technology (Chengdu) Co., Ltd., said bluntly that most of the used cars exported are new cars named 'used cars'. Market Order. The actual situation at present is that it is very difficult for small and medium car manufacturers to participate in the export trade. First of all, only corporate households can enjoy the export tax rebate policy for second-hand cars. Secondly, overseas customers are usually dealers rather than end users, so the demand is generally for a single model in large quantities. Third, second-hand car traders and domestic dealers are two groups of people, so there will be intermediate links and relatively high transaction costs.
Fu Yi, assistant to the chairman of Chongqing Huanyu Automobile Sales Co., Ltd., said that due to factors such as lack of car sources, lack of funds, and fierce competition in the industry, traditional second-hand car dealers have little advantage in exporting second-hand cars. Car dealers are interested in the 'parallel export' business only because the business is relatively simple and can be profitable in the short term.
Li Yue, head of the vehicle import and export department of Beijing Automobile Trading Co., Ltd., also firmly believes that the future direction of my country's second-hand car exports must not be 'parallel exports.' He believes that as a second-hand car trading market, it should focus its business on how to serve second-hand car export companies well, and provide domestic companies with a platform for in-depth connection with foreign companies. The market should increase transparency, provide multi-dimensional guarantees for vehicle quality, and gradually Developed into a platform for foreign buyers and agents to purchase vehicles in China.
In the view of Luo Sicheng, chairman of Guangxi Fengchi International Trade Group Co., Ltd., 'parallel export' should not become the 'emperor's new clothes' for second-hand car export. my country must take the road of innovation in the whole industrial chain of second-hand car export with Chinese characteristics.
The industry is showing signs of rushing
Luo Lei, assistant to the president of China Automobile Dealers Association, examined the status quo of my country's auto export market from a unique perspective. When introducing the export experience of foreign used cars, he pointed out that Japan's second-hand car exports have experienced rapid growth in this century, and fell back slightly after reaching 1.4 million in 2010.
The reason why Japan’s second-hand car exports can quickly open up the international market is because of its obvious price advantage. The domestic price of a 7-year-old car is basically zero in Japan. Therefore, many foreigners who live in Japan directly buy cars from auction houses. That is to say, the companies in the existing target countries will go to the Japanese local used car market to find car sources. Data show that overseas companies account for 70% to 80% of Japanese second-hand car export companies. In my country, basically, local companies are engaged in the export trade of second-hand cars, and they take the initiative to go out.
Luo Lei emphasized that my country's second-hand car export is still in the exploratory stage, and there is a sign of herd after the policy is liberalized. At present, many second-hand car traders focus their business on 'parallel export cars', but this kind of business is not the general direction of future industry development.
At present, my country's second-hand car export traders are facing unstable overseas orders; customers do not understand Chinese brands and are worried about product quality and after-sales service; information asymmetry between overseas procurement and domestic supply; small-scale export international logistics costs are too high; self-built overseas warehouses It requires a large investment; how to expand overseas markets and other issues.
At the same time, domestic traders will personally do everything from organizing vehicle sources to export testing, international logistics, building overseas warehouses, and even building parts supply systems and after-sales service systems. The labor they pay does not match the rewards. And once there is a deviation in the grasp of information such as the human environment, political environment, market environment, religious beliefs, social security, and government policies of the target country, or some of the conditions change suddenly, domestic traders may pay a heavy price.
Walking in small steps + borrowing a boat to go out to sea
Luo Lei suggested that second-hand car export companies can consider 'borrowing a boat to go to sea'. my country's second-hand car export should take small steps, and it might as well start with wholesale sales. Many companies have worked overseas for many years, have a good material foundation and personal connections, and can borrow existing resources. In addition, Japan's second-hand car export industry is very mature, but because it is a right-hand drive car, the export is subject to certain restrictions. Chinese enterprises can cooperate with Japanese enterprises to solve the problem of their national vehicle sources for left-hand drive vehicles.
After 2020, the advantages of my country's new energy vehicles will gradually emerge. With the addition of factors such as the global epidemic and chip shortages, my country will usher in opportunities for the export of second-hand cars. FAW International Trading (Tianjin) Co., Ltd. has also launched related businesses. Zhao Dan, deputy general manager of the company, said frankly that the manufacturers' second-hand car exports are mainly carried out around their own brands. The 'parallel export' method just fits the current development needs of the automobile export market, but this method will also conflict with the export of new cars.
Zhao Dan suggested that in the case of export enterprises without their own channels, they can adopt the method of 'borrowing a ship to go to sea' to connect with local distributors to establish overseas channels, and they can also build an e-commerce platform as an aid and transition.
Wei Shuqi, a consultant in charge of internationalization strategy at EAC Eurasia Consulting in Germany, said that my country's second-hand car companies generally face the challenges and pain points of 'should they invest in the long-term' and 'not familiar with the place of life'. She suggested that enterprises should find their own positioning in the value chain based on their own business foundation, and find suitable opportunities for transformation and transcendence among success factors.