In an interview with China News Service, Sun Zhongping, the general manager of Zhejiang Yuantong Used Car Co., shared some impressive statistics about the company’s growth in the used car export market. “From January to September 2024, we have exported over 14,000 used cars. Just over five years ago, we sent our first used car to an overseas client,” he said, highlighting the rapid advancement of the used car export business in China.

The significant push towards this growth can be traced back to a notice issued by the Chinese Ministry of Commerce, the Ministry of Public Security, and the General Administration of Customs in 2019. This notification officially supported the establishment of used car export enterprises in mature regions, and areas like Beijing, Tianjin, Shanghai, and Taizhou in Zhejiang became pioneers in this industry. In December 2020, Zhejiang’s provincial government introduced the country’s first provincial-level used car export policy to accelerate the sector’s development.

Reflecting on the beginning of this journey, Sun recounted the moment when Zhejiang exported its first used car—a Buick GL8—on August 2, 2019. “We had everything ready, from the vehicle inspection reports to the customs paperwork. Once the customs approval came through, we promptly collected the export license from the Zhejiang Provincial Department of Commerce,” he said, recalling the excitement that kept him awake for several nights due to the promising outlook for China’s used car exports.

He emphasized the significance of that first export, illustrating what he referred to as the “sweet potato economy.” The vehicle was facilitated by a Chinese expatriate in Côte d’Ivoire and was sold for $12,968, boosting confidence for Zhejiang’s used car export businesses.

Today, the range of used vehicles exported from China is diverse, including both high-mileage cars and those with little to no mileage, as well as new energy vehicles, gasoline-powered cars, and specialized vehicles for public services like buses and garbage trucks.

“Nebewable energy vehicles represent up to 50% of the second-hand cars we export,” Sun noted, pointing to the rapid development of the new energy sector in China. For instance, Wenzhou-based electrical companies have established numerous charging stations in Africa, and Chinese companies in the new energy vehicle market hold a competitive edge globally in areas like batteries and electric motors.

From January to June 2024, Zhejiang exported 38,286 used cars—a remarkable 161.5% increase—generating $75,337.5 million in revenue, up by 155.7%. This figures place Zhejiang at the top of the country’s used car export rankings. The province primarily targets markets in Central Asia, the Middle East, and Africa, with most being countries involved in the Belt and Road Initiative.

Wang Chen, general manager of Zhejiang Fanglin Import and Export Trade Co., added, “The vast geography of Central Asia, with its deserts and grasslands, means that cars are a necessity for transportation. Due to the high price of new cars, many in Central Asia prefer the used cars exported from China, creating ample opportunities for business.”

However, the used car export sector in China faces challenges, including fierce competition and increasing trade barriers. In response, companies in Zhejiang are actively refining their internal capabilities and seeking new breakthroughs.

In the latter half of this year, Wang conducted extensive inspections across multiple global locations, continuously exploring emerging markets. Meanwhile, Yuantong Used Car plans to establish overseas live-streaming bases and create a dynamic presence on social media platforms like TikTok and YouTube.

Professor Xu Xiaohua from the School of Economics at Zhejiang University advised, “For Chinese used cars to have a long-lasting impact, product quality and brand development are crucial. Chinese automakers, especially those in the new energy sector, need to continuously enhance their product competitiveness and brand influence to secure greater market share in the mid-to-high-end segments of used car exports.”

Xu also noted that since China’s used car export industry is still in the reputation-building phase, companies could focus on strengthening parts supply, repair services, and posts-sale support to respect the consumer experience of overseas buyers, creating a positive reputation in the market.