China Moves to Regulate Used-Car Exports, Restricts “Zero-Mileage Used Cars”

The new regulation directly targets the growing practice of exporting “zero-mileage used cars.”

China has introduced stricter regulation on used-car exports, aiming to curb the export of new vehicles under the guise of used ones and enhance oversight of export licensing, according to a joint notice released by the Ministry of Commerce, the Ministry of Industry and Information Technology, the Ministry of Public Security and the General Administration of Customs.

The notice stipulates that, starting January 1, 2026, companies applying to export vehicles registered for less than 180 days must submit a manufacturer-issued After-Sales Service Confirmation Letter.

The document must include the destination country, vehicle details and information on service outlets, and be stamped by the manufacturer. Vehicles without such documentation will not receive export permits.

The policy directly addresses the growing loophole of “zero-mileage used car” exports, in which companies briefly register new vehicles as used to conduct export arbitrage.

Regulators say the new rules are intended to restore the export market to its original purpose—exporting genuinely used vehicles—while strengthening supervision of exporter conduct.

Local commerce authorities will establish a credit evaluation system and conduct dynamic monitoring based on a negative list of dishonest practices. A market exit mechanism will also be implemented to remove non-compliant exporters.

Export licenses will be denied for vehicles lacking proof of authentic modifications, or for modified models not included in the MIIT’s Road Motor Vehicle Manufacturers and Products Announcement, or without valid national mandatory product certification.

The notice also encourages coordination among exporters, manufacturers and overseas importers to ensure after-sales services, including parts supply and technical support, and promotes collaboration with logistics, finance and third-party warranty providers.

China’s used-car export market is currently benefiting from overlapping policy support and surging demand. With over 400 million vehicles in circulation, a mature supply chain and competitive pricing, China has a strong foundation for global expansion.

Used-car exports have continued rapid growth in 2025, exceeding 400,000 units from January to August, including more than 30% new-energy vehicles.

Full-year exports are expected to reach 500,000–600,000 units, compared with fewer than 3,000 vehicles in 2019 when pilot programs began—an increase of over 145 times and a compound annual growth rate exceeding 100%.

According to Wang Du, Vice President of the China Automobile Dealers Association, the notice is not merely restrictive regulatory oversight, but a vital step in shifting the industry from “volume growth” to “value growth.”