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China’s recent export trend of “zero-kilometer” used cars is facing increasing challenges as domestic brands expand internationally and more countries tighten vehicle import regulations.
Many automakers are partnering with used car dealers to ship virtually new vehicles with no mileage abroad, primarily to clear inventories and stimulate sales. Dealers reveal that these zero-kilometer cars are practically brand new but are sold around 20 percent cheaper than brand-new models.
Intense price competition within the domestic market has driven automakers to liquidate surplus stock at significant discounts. An insider from the China Automobile Dealers Association mentioned that over half of new car dealerships are currently operating at a loss, which has led some to collaborate with used car exporters to improve cash flow.
However, the window for exporting nearly new cars appears to be narrowing. The general manager of a major electric vehicle manufacturer’s international division stated that numerous foreign governments increased restrictions this year, implementing stricter rules and certification standards that limit imports of zero-kilometer used vehicles.
China, the world’s largest automobile producer, started exporting used cars in 2019 through a pilot program that shipped roughly 3,000 vehicles. Last year, that number jumped to 436,000 units.
Despite this growth, exports still constitute a small portion of China’s overall secondhand car market. According to industry sources, international shipments make up less than 10 percent of total exports and are predominantly concentrated within electric vehicles. Over 90 percent of exported used EVs last year were nearly new, which puts pressure on profit margins for dealers.
International buyers have been the primary beneficiaries of this practice. A seasoned dealer with experience across the Middle East and Central Asia explained that consumers in those regions prioritize vehicle condition and typically require formal inspection reports that verify paint and repair history, rather than relying solely on video inspections and paint gauges.
Industry experts suggest that the export of nearly new vehicles is likely a temporary trend. As independent Chinese brands grow stronger in global markets, demand for zero-kilometer used cars is expected to diminish, according to a recent industry conference.
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