Feng Huang Wang·2025-11-14 23:00Core Viewpoint - The recent regulatory measures by Chinese authorities aim to address the chaotic "zero-kilometer used car" phenomenon, ensuring that used car exports return to their original purpose and enhancing the oversight of export enterprises [1][2][3] Group 1: Regulatory Changes - The Ministry of Commerce, Ministry of Industry and Information Technology, Ministry of Public Security, and General Administration of Customs issued a notification to strengthen the management of used car exports, effective January 1, 2026 [1] - Vehicles registered for less than 180 days will require additional documentation, including a service confirmation letter from the manufacturer, to obtain export permits [1] - The notification provides a buffer period of approximately one and a half months for companies to comply with the new regulations [1] Group 2: Industry Context - The "zero-kilometer used car" issue has been criticized for allowing new cars to be exported under the guise of used cars, circumventing import/export controls and taxes, and potentially harming brand reputation [1][2] - The used car export volume in China has seen explosive growth, with projections of 500,000 to 600,000 units for the year, a significant increase from less than 3,000 units in 2019 [2][3] - The growth of used car exports has raised concerns about the integrity of some enterprises, leading to a trust crisis in the overall image of Chinese used car exports [2][3] Group 3: Industry Growth and Future Outlook - Since the pilot program began in 2019, China's used car exports have grown from 4,300 units in 2020 to over 436,000 units in 2024, covering more than 160 countries and regions [3] - The regulatory framework aims not only to impose restrictions but also to guide the industry towards healthy development by clarifying rules and encouraging self-regulation among enterprises [3] - The focus is shifting from mere scale growth to value growth in the used car export sector, supported by systematic measures to enhance compliance and quality [3]