China Tightens Oversight on Used Car Exports to Prevent Abuse

New Regulations to Curb 'Zero-Mileage' Vehicle Exports

China's Ministry of Commerce has announced plans to strengthen oversight of used car exports starting next year. The new regulations will require exporters to provide detailed maintenance information for vehicles that are exported less than 180 days after their initial registration. This move is designed to curb the practice of selling new vehicles as used cars, a practice that has been prevalent in China's automotive industry.

Addressing the 'Zero-Mileage' Issue

The regulations specifically target the so-called 'zero-mileage' vehicles - new cars that are registered as used and then exported to foreign markets such as Russia, Central Asia, and the Middle East. This practice, often facilitated through gray market channels, has been criticized for potentially damaging the reputation of Chinese automotive brands internationally.

Industry Response and Government Action

The new measures follow calls from major Chinese automakers, such as Changan, to crack down on these practices. Local governments have also been encouraged to monitor exporters more closely and prevent dishonest business practices that could harm the quality assurance commitments of Chinese manufacturers.

Implications for China's Automotive Industry

By implementing these tighter controls, China aims to enhance the integrity of its automotive export business and protect its international reputation. The move is expected to have significant implications for both domestic manufacturers and exporters, as well as for the global used car market.