The need for affordable cars in export markets around the world is creating demand for used Chinese vehicles, which are being exported at competitive prices to raise standards of quality. Over the last several years, Chinese has increased its vehicle production dramatically and this overproduction of vehicles have gone a long way home. This surplus comes in handy for exporters, with prices of used vehicles often 30% to 50% lower than equivalent models in Western markets. For instance, a five-year-old China-made car will sell $4,000-$6,000 in developing markets.
For instance,—and setting aside transportation for a moment—specific industry factors include the growing “commoditization” of quality and safety regulations that affect the attractiveness of these vehicles. To its credit, the Chinese carmaker -- along with several others that include Geely, BYD and Chery -- have greatly improved manufacturing processes resulting in higher safety ratings as well as advancing technologies such as electric powertrains and autonomous driving systems. This bodes well with the increasing international requirements for relatively more affordable, cleaner and technologically laden vehicles. This is borne out by a report from China Association of Automobile Manufacturers (CAAM) according to which almost 20% of the used vehicles exported in 2023, were electric or hybrid powered.
The economy must play a large part); Cheap used Chinese cars Cheap used chinese cars not only the initial cost but for example very cheap maintainence as well. Parts are easily available and due to the presence of service centers in good numbers, maintenance works out 25% cheaper than their imported counter parts typically. Neol Nadi of Kenya noted: “From the few Chinese cars we tested, what became clear is that they offer good value-for-money — especially when you look at long-term running costs. Accordingly, they remain a logical choice for buyers Africa and Southeast Asia due to the combination of affordability and availability of parts.
Trends in export of used cars in China The history points to a low but steadily growing trend. Just in 2021, exports of used vehicles from China exceeded 200.000 units -- a rise of over +40% YoY! Among the biggest export markets are these in Africa, the Middle East and Southeast Asia that value affordable cars. However, Nigeria and Egypt have started registering a lot of Chinese vehicles being brought in like Geely models and Great Wall that are cheap to buy & build trust.
Geopolitical factors also drive this trend, experts say. Chinese car manufacturers and dealers have made it to numerous overseas markets, only now with the added help of China's Belt and Road Initiative (BRI) which is bringing new transportation links into business. In order for exporting of used vehicles to make economic sense, the logistics have to be efficient and transportation costs low. A study by the China Academy of Transportation Sciences cites logistical enhancements that have cut shipping times, on average, 15% over five years making Chinese-branded vehicles more attractive in foreign markets.
Additionally, prospective suppliers of used Chinese cars for export are able to use stainless-steel exporting platforms which vary from basically buying listings and inspections on the vehicles they sell all the way through direct outsourced shipping. In the same way, platforms like Autocango provide availability to a wide range of cost-effective vehicles and allows international customers to pick out a suitable vehicle according to your own business requirements.
Low prices, better qualities and a strategic market location are why used Chinese cars may be good alternatives for exporters when the worldwide demand heats up.