'In the past three years, due to factors such as the epidemic situation and rising sea freight, the export volume of second-hand cars has declined, but this year the business volume has improved significantly. In the first four months of this year, the export volume of our company's second-hand cars has exceeded that of last year. Throughout the year, we plan to complete the sales target of exporting 4,000 vehicles this year.” Recently, an insider of a second-hand car export company told a reporter from China Business Daily.
Compared with Japan, South Korea, Europe, the United States and other countries, my country's second-hand car export started relatively late and is still in its infancy. On April 26, 2019, the Ministry of Commerce, the Ministry of Public Security, and the General Administration of Customs jointly issued the 'Notice on Supporting the Export of Second-hand Cars in Areas with Mature Conditions', and the first batch of vehicles started in Beijing, Tianjin, Shanghai, Zhejiang (Taizhou), Ten provinces and cities including Shandong (Jining), Guangdong, Sichuan (Chengdu), Shaanxi (Xi'an), Qingdao, and Xiamen have officially launched domestic used car export business.
The reporter noticed that since 2023, my country's second-hand car export business has improved significantly. According to data released by Tianjin Customs recently, since the beginning of this year, more than 5,200 second-hand cars have been exported at Tianjin Port, a year-on-year increase of more than 6 times, and large-scale development has initially been achieved. In 2022, Taizhou City, Zhejiang Province, which ranks first among the 30 pilot cities nationwide in the number and value of second-hand car exports, also recently disclosed that in the first four months of this year, Taizhou exported a total of 3,265 second-hand cars, with an export value of 63.3655 million US dollars. The reporter noticed that in 2019, when the second-hand car business had just started, Taizhou exported only 794 second-hand cars, with an export value of only US$4.4172 million.
'Although the current export volume of domestic used cars is still small, China, as the world's largest car producer and consumer, has provided sufficient sources of goods for the export of used cars. my country's value-added tax on used cars has been reduced from 2% to 0.5%. It is a major positive policy for second-hand car export companies. In the future, with the commercialization of second-hand cars and the further lifting of restrictions on relocation, the second-hand car export business will usher in a major development opportunity.” Recently, the vice president and secretary-general of the China Automobile Dealers Association Xiao Zhengsan said at the 2023 China Second-hand Car Export Summit Forum.
Luo Lei, assistant to the president of the China Automobile Dealers Association, believes that my country's second-hand car exports should take small steps, and we might as well start with wholesale sales. 'Many companies in our country have worked overseas for many years, have a good material foundation and personal connections, and can borrow existing resources (do a good job of exporting used cars).'
The pace of 'going out' is further accelerated
The export of second-hand cars is an important starting point for promoting the upgrading of domestic automobile consumption, promoting automobile circulation and domestic and international dual cycles, and is of great significance to promoting automobile consumption and industrial upgrading.
The reporter learned from the China Automobile Dealers Association that since the second half of 2019, my country has carried out pilot work on used cars in three batches. At present, 44 cities have become pilot cities for second-hand car export, and more than 100 enterprises have obtained the qualification of pilot second-hand car export enterprises. Since the second-hand car export business has been launched for four years, the export volume and export value have increased year by year. The business involves Europe, America, the Middle East, Africa and other countries and regions. Used car export has gradually become a new force in the development of the used car industry.
Since the beginning of this year, domestic second-hand car exports have shown a warming trend. In January this year, Changchun City exported 822 second-hand cars, with an export value of nearly 100 million yuan, reaching 90% of last year's export volume and 60% of export value, showing explosive growth. In the first four months of this year, Taizhou exported a total of 3,265 second-hand cars, which is 4.1 times its export data for the whole of 2019. On May 30, data released by Tianjin Customs showed that since the beginning of this year, the number of second-hand car exports at Tianjin Port has increased by more than six times year-on-year.
'Since the beginning of this year, many ports in my country have been busy, and many domestic second-hand cars have been exported to other parts of the world on ro-ro ships. The new energy second-hand cars exported by my country are more cost-effective and are more popular in overseas markets.' The above-mentioned second-hand cars An insider of the export company told reporters.
The reporter noticed that at the national level, Dongfeng's policy is constantly 'escorting' the export of automobiles. At the end of April this year, the 'Opinions on Promoting the Stable Scale and Optimal Structure of Foreign Trade' issued by the General Office of the State Council mentioned the need to cultivate the advantages of automobile exports. Enterprises sign medium and long-term agreements. At the same time, the above-mentioned documents pointed out that all localities should further support auto companies to establish and improve the international marketing service system, and enhance the ability to carry out brand promotion, display sales, and after-sales service overseas.
Since the beginning of this year, the pilot used car enterprises in many places in China have expanded, and many local governments are also making efforts to promote the export of used cars.
On June 7, the General Office of the People's Government of Jiangsu Province issued the 'Notice on Several Measures to Promote the Stable Scale and Optimum Structure of Foreign Trade'. Regarding the automotive field, the 'Notice' mentioned that it will support the optimization and expansion of Nanjing's second-hand car export pilot enterprises, guide Suzhou to start the second-hand car export business as soon as possible, and steadily expand the second-hand car export. Since the beginning of this year, provinces and cities including Guizhou have issued second-hand car export licenses to accelerate the promotion of second-hand car export business.
Many interviewees in the industry believe that although the scale and competitiveness of my country's second-hand car exports in overseas markets need to be strengthened, my country's second-hand car exports are playing an increasingly important role in the auto industry.
'Further expanding the scale of second-hand car export will help to further improve the supporting service system related to second-hand car export, such as maintenance and maintenance, testing and certification, warehousing and logistics, and financial credit insurance, further improve the international marketing network and after-sales service system, and continuously expand international market channels. Further help my country's auto exports.' Cui Weijie, vice president of the Research Institute of the Ministry of Commerce, said previously.
Second-hand car exports still need to 'prescribe the right medicine'
'Despite facing huge development opportunities, my country's second-hand car exports are also facing considerable challenges. For example, the export business of second-hand cars to Japan, South Korea, Europe and the United States has reached a relatively large scale of one million vehicles per year. In international logistics, channel expansion, after-sales service, etc. The cost of each link is lower than that of China; the increasing uncertainties in the international trade environment, the lack of a good international brand and reputation for China's auto exports, the imperfect export system of used cars, and the lack of professionals in auto foreign trade are all constraints and constraints.' On May 31, the supporting event of the 2023 Maritime Silk Road International Expo - New Energy Vehicle Export Conference and the second 'Guangdong Auto Trade Global' was held as scheduled. The 'Blue Book on Guangzhou Used Car Export Development' released at this meeting disclosed the above content.
It is true that there are huge business opportunities in the export of second-hand cars in my country. But while ushering in 'opportunities', the 'challenges' faced by second-hand car exports cannot be ignored.
A number of people in the industry told reporters that my country's second-hand car export is still in the extensive development stage, with uneven quality, lack of relevant professionals, and a second-hand car after-sales system that has not yet been established. These factors are not conducive to the development of my country's second-hand car export business. At the same time, in the second-hand car export business, the government and enterprises also need to further run in, and the communication and linkage between the two parties need to be strengthened.
In order to expand the export of second-hand cars in an orderly manner and promote the sound development of the second-hand car export business, in December 2022, the Ministry of Commerce, the Ministry of Public Security, and the General Administration of Customs issued the 'Notice on Further Expanding the Regional Scope of Second-hand Car Export Business'. The above-mentioned documents stated that it is necessary to improve the scale of export quality and efficiency. Regions that carry out second-hand car export business formulate access standards for local enterprises, standardize the selection process, and support comprehensive competitiveness such as vehicle source integration capabilities, overseas marketing channels, and after-sales service guarantee capabilities. of enterprises carry out the export business of second-hand cars.
At the same time, the document requires that export vehicles should meet the export target market access standards, and all localities should also strengthen interim and ex-post supervision, standardize business operations, supervise enterprises to fulfill product quality responsibilities, and maintain the overseas image of Chinese products. In addition, the above-mentioned documents pointed out that the areas that carry out the export business of second-hand cars should improve the level of facilitation in the process of vehicle transaction registration, license application, port customs clearance, and vehicle cancellation, so as to create a good environment for the export of second-hand cars.
'With the continuous expansion of new energy vehicle use scenarios and the further regulation of my country's second-hand car export business, China's second-hand car export demand and opportunities are constantly emerging. In the long run, my country's second-hand car export has broad room for development.' Interviewed Industry insiders said.