Exports of used cars rise on policy steps

Sales of both pre-owned gas-powered autos, NEVs up on higher-quality units

Speaking fluent English into a smartphone camera and weaving his way through various used cars placed in a well-decorated exhibition hall, Zhang Qifeng, a livestreamer at automobile dealer China-Europe Auto City, was recently showcasing the features and functions of the automobiles to an overseas audience.

"I now present you the Range Rover Evoque, a subcompact luxury crossover sport utility vehicle. It's a three-year-old car with some 6,300 miles on the odometer, and the final offer is $45,000," Zhang explained to the audience in English.

This is a new-format marketing strategy to capture the minds and wallets of potential used-car buyers as demand spurts for such vehicles from overseas markets, said Chen Youfu, general manager of the automobile dealer based in Chengdu in Southwest China's Sichuan province.

Over 700 used cars have been exported to the Middle East and Central Asia as well as Russia in the first five months of this year, a 60-percent increase year-on-year, Chen said.

Leveraging livestreaming platforms offers a greater opportunity to gain more visibility, keep in touch with overseas customers, increase followers and, thereby, increase sales, he said.

Chengdu, along with Beijing, Shanghai, Tianjin and Guangdong, were among the first batch of 10 regions that were permitted to kick off the export of second-hand cars in May 2019.

With the list extended to 44 regions, more companies operating such businesses have witnessed fast-growing orders for used cars from global buyers.

China exported about 40,000 units of used cars last year, according to an estimate by the China Automobile Dealers Association. The number was only 3,036 units in 2019.

In the first five months of this year, various regions have maintained robust sales of used cars to overseas markets.

Chengdu and Tianjin, for instance, exported 4,380 and 5,200 second-hand vehicles, respectively, according to data released by the local Customs administration.

Despite being weighed down by the effects of the COVID-19 pandemic, transport and logistics disruptions as well as dampened global demand, the rapid growth in used car exports has been no easy feat, said Wang Haiyang, a researcher with the China Automotive Technology and Research Center.

Intensified efforts to optimize vehicle transaction registrations, ease license applications for relevant companies and simplify Customs clearance procedures have created an enabling environment to bolster the export of second-hand cars, Zhang said.

On top of policy incentives, the country's booming new energy vehicle sector, highlighted by its wide variety, cost-effectiveness and intelligent vehicle operating systems, has contributed significantly to used car exports.

Tianjin Cinko Vehicle Logistics Co Ltd has been exporting used cars since September 2020, and has rapidly expanded business with second-hand NEV exports as its mainstay after China's NEV industry developed quickly.

Shi Yunsheng, the company's general manager, said NEVs purchased by domestic consumers are among the most advanced, featuring higher driving ranges, ultrafast charging and smart operating systems. Even when these cars are resold, they sell like hotcakes, Shi said.