Shanghai stepping on gas for used car exports

Shanghai has set a goal of exporting 50,000 used cars annually by 2027, a move experts expect will boost the city's auto industry from both the supply and demand sides and further improve the integrity of the industrial chain.

"Against the backdrop of a sluggish global economy, consumer demand for automobiles is becoming increasingly diverse. However, demand for used cars in overseas markets is growing, presenting opportunities for Chinese companies," said Sun Lijian, director of the Financial Research Center at Fudan University.

"Better meeting the preferences of different income groups will support the healthier development of the auto sector," Sun said.

On Sept 12, Shanghai unveiled a 13-point action plan to promote used car exports, setting a target of raising annual exports to 50,000 units by 2027, according to a notice issued by the Shanghai Municipal Commission of Commerce on Sept 11.

"Shanghai is moving to streamline used car circulation and boost exports by developing a full-chain international trade service platform," the notice said.

The initiative aims to upgrade the city's auto sector and reinforce its role as a global trade hub. By 2027, Shanghai plans to foster three to five leading exporters, with annual exports estimated to reach 50,000 vehicles.

The notice added that a comprehensive service platform for used car exports will be built, with greater support to expand export volume, new facilitation measures and enhanced export-related services.

"China's used car exports are entering a golden period driven by both policy incentives and surging market demand," Luo Lei, vice-president of the China Automobile Dealers Association, was quoted as saying by Economic Daily during an industry conference.

"With more than 400 million vehicles in operation, a mature supply chain and cost-effective models, China has a solid foundation for export growth," Luo said.

Official figures show that China exported more than 400,000 used cars in 2024, reaching more than 160 countries and regions, with the business becoming a new force in driving auto consumption and industrial upgrading.

At the same time, experts said the sector needs a coordinated development framework led by government, driven by enterprises and supported by industry associations. Building standardized, internationalized service systems is seen as key to overcoming barriers in overseas markets and shaping a more competitive global circulation network.

"As China integrates into global production, the consolidation of homegrown technologies and domestic supply chains has created one of the world's most complete industrial systems," said Sun, adding that the sustained development of such a comprehensive chain depends on both new quality productive forces on the supply side and a unified national market on the demand side.

"Shanghai's latest policy is an extension of nationwide efforts," Sun said.

To further promote used car exports, in February 2024, the Ministry of Commerce and four ministerial departments jointly issued a notice to launch a used car export business infrastructure.

While strictly ensuring quality and safety, the notice encourages the establishment of export bases offering functions such as display and trading, maintenance, inspection and certification, Customs clearance, logistics and financial services.

The notice also supports automakers in strengthening international marketing networks and leveraging brand and channel advantages to improve after-sales services for Chinese vehicles abroad.

Earlier, in 2019, the Ministry of Commerce, Ministry of Public Security and General Administration of Customs issued a notice supporting used car exports in regions with mature conditions, marking the start of pilot exports.

As the world's largest country in terms of both vehicle ownership and consumption, China has made significant progress in used car exports over the past five years. Chinese used cars are now sold to more than 140 countries and regions, supporting both stable and high-quality foreign trade and domestic auto consumption upgrades, People's Daily reported.