With the new Chinese auto export policy coming in 2026, what is the current state of China's used car exports?
As the crucial deadline of December 31st approaches, the new policy from the Ministry of Commerce and other four departments is entering its final countdown—vehicles that completed transfer registration before the end of 2025 can still apply for export licenses normally in 2026; however, from January 1, 2026, vehicles registered for less than 180 days must submit an "After-Sales Service Confirmation" issued by the car manufacturer, clearly specifying the export country, after-sales service network, and other information.
Exporters are stockpiling cars to rush production, with half of the companies facing elimination.
The core of this sprint is the final pursuit of the gray-area profits from "zero-kilometer used car" exports. So-called "zero-kilometer used cars" refer to vehicles that have completed registration but have extremely low actual mileage and are indistinguishable from new cars. Some companies use this "registration-is-export" operation to circumvent the technical certifications and high tariffs for new car exports, thereby obtaining export tax rebates and local subsidies, while simultaneously flooding overseas markets with low prices. Data shows that by 2025, China's total exports of "zero-kilometer used cars" are expected to reach approximately 450,000 units, accounting for the vast majority of total used car exports.
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The implementation of the new policy means that this gray path will be significantly blocked; the "After-Sales Service Confirmation Certificate" alone has eliminated 90% of those involved.
Under the pressure of elimination, exporters are making an exceptionally aggressive push. In addition to rushing to complete transfer registrations, some companies are also accelerating inventory checks and securing overseas orders, attempting to maximize production capacity within the window of opportunity.
Behind the New Policy: Saying Goodbye to Unregulated Growth, Used Car Exports Embark on a High-Quality Transformation
Since 2019, China's annual used car exports have surged from less than 3,000 vehicles to 436,000 vehicles in 2024, an increase of over 145 times. It is projected to exceed 600,000 vehicles in 2025, with Southeast Asia accounting for over 50%. However, behind this rapid growth, the unregulated export of "zero-kilometer used cars" has led to a growing crisis of trust and brand damage. The new policy aims to shift the industry from price competition to quality competition.
In the long run, the new policy does not negate the development prospects of used car exports. Overseas demand for used cars remains strong, with shortages in Russia, Central Asia, and Africa. Chinese used cars still possess strong competitiveness in terms of product quality and price. The new policy, through measures such as establishing dynamic management and exit mechanisms for enterprises and supporting the construction of overseas after-sales systems, can both cut off illegal channels and pave the way for compliant companies, helping the industry improve its parts supply chain and service levels, allowing Chinese automobiles to go global more steadily and sustainably.
The last week of December saw the lights of vehicle registration offices across the country and the bustling activity of exporters, painting a crucial picture of the industry's transformation. As 2026 approaches, this "final frenzy" will eventually come to an end, and China's used car export industry, guided by policy, will bid farewell to its period of unchecked growth and move towards a new stage of high-quality development.
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