China to tighten oversight on new cars exported as used vehicles

China will strengthen oversight of used-car exports and strictly control the export of new cars under the guise of used vehicles, according to a notice issued by the country’s commerce ministry on Friday (Nov 14).

From the start of next year, vehicles that apply to be exported less than 180 days after they were registered will be required to submit information needed for after-sales maintenance services, the Ministry of Commerce said.

Used car exporters will also be more closely scrutinised by local commerce authorities for dishonest behaviour or for failures to provide quality assurance obligations, it said.

Reuters reported in June that China’s auto industry has inflated car sales for years through a grey market that registers new cars right off the assembly line and then ships them overseas as “used” vehicles.

These so-called “zero-mileage” cars have never been driven but were being exported as used to markets like Russia, Central Asia and the Middle East, and the practice was actively encouraged by regional Chinese governments.

In June, the chairman of Chinese automaker Changan called for a crackdown on exports of zero-mileage used cars, saying the practice could “enormously damage Chinese brands’ image” abroad. REUTERS

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