China will tighten rules on 0 km used car exports, requiring after‑sales guarantees. Learn how the new policy protects buyers – read more now.
Starting January 2026, China’s government will enforce stricter controls on the export of so‑called “0 km used cars.” Any vehicle shipped abroad within 180 days of its first registration must be accompanied by a manufacturer‑issued after‑sales service certificate that lists the destination, vehicle details and bears an official seal. The move aims to curb mileage fraud and improve consumer protection in both home and overseas markets.
What Are “0 km Used Cars”?
The term refers to cars that leave the factory with a mileage reading of zero—or only a few hundred kilometres—yet are marketed as used vehicles. These cars may be already registered or not, depending on how the transaction is structured, but they are consistently sold through used‑car channels despite being essentially brand‑new.
How Big Is the Problem?
- Domestic transactions of 0 km used cars are estimated at around 1 million units in 2024, roughly 5 % of China’s total used‑car market.
- Exports have surged from just 15,000 units in 2021 to 436,000 in 2024, with projections to exceed 500,000 this year.
- Industry analysts believe that 70‑80 % of these exported ‘used’ cars have never actually been driven on public roads.
Why Are Manufacturers Doing This?
Prolonged overcapacity has left many Chinese automakers with excess inventory. To free up cash and clear stock, they push large volumes of new‑look vehicles into the used‑car market, often offering deep discounts. Export channels act as a safety valve, allowing firms to move inventory quickly while still presenting the cars as “pre‑owned.”
Risks for Consumers and Brands
On the domestic front, the flood of artificially low‑priced “used” cars erodes the traditional valuation system used by dealers, creating pricing volatility. Internationally, many of these vehicles arrive without proper localisation or official after‑sales support, leading to complaints about maintenance, software updates, and battery service. Such issues threaten the reputation of Chinese automotive brands, especially when the problems are traced back to the exporting entities rather than the manufacturers themselves.
Government’s New Regulatory Approach
Four ministries, led by the Ministry of Commerce, have coordinated a set of rules to bring greater transparency to the used‑car export market. Key points include:
- Every car exported within 180 days of registration must carry a certified after‑sales service guarantee issued by the original manufacturer.
- The guarantee must specify the shipment’s destination and include detailed vehicle information.
- Official manufacturer seals are required to validate the document.
The regulation does not ban the export of used vehicles outright; instead, it raises the compliance bar by linking export eligibility to a verifiable after‑sales commitment.
What This Means for the Market
By ensuring that exported cars come with backed‑up service support, the new policy aims to:
- Protect foreign buyers from faulty or unsupported vehicles.
- Stabilise domestic used‑car pricing by curbing the influx of “zero‑mileage” listings.
- Boost the global credibility of Chinese automotive brands.
Exporters will need to adjust their logistics and documentation processes, but the overall outlook suggests a cleaner, more trustworthy marketplace for both sellers and consumers.
Conclusion
China’s crackdown on 0 km used‑car exports reflects a broader push for transparency and consumer confidence in a rapidly expanding automotive sector. While the new rules introduce additional paperwork for manufacturers and exporters, they promise long‑term benefits: healthier pricing structures at home, stronger brand perception abroad, and fewer post‑sale disputes for buyers worldwide.