China greenlights second-hand car exports into boost salesReuters #Second_HandMay 6, 2019
FILE PHOTO: Used cars are seen at a second-hand car market in Pingdingshan, Henan province, China November 15, 2018.
BEIJING (Reuters) – China commerce ministry has started allowing exports of second-hand cars, marking the country’s latest move to drive domestic sales and promote trade in the world’s biggest auto market.
The move comes after sales in China contracted last year for the first time since 1990s.
It described the potential for used-car exports from China as “huge”, saying that in most developed countries exports account for roughly 10 percent of used-car sales.
Such exports can “stimulate the vitality of the domestic automobile consumption market, promote the healthy development of China’s automobile industry, and promote the steady improvement of foreign trade”, it said.
China’s second-hand car market is still far smaller than that for new cars.
In 2018, sales of used cars in China hit 13.82 million, less than half of sales of new cars at 28.08 million, according to the commerce ministry.
“If used cars sales are accelerated it will help smoothen sales of new cars,” he added.
Reporting by Yilei Sun and Brenda Goh; Editing by Himani Sarkar