Chongqing - China’s Ministry of Commerce has tightened rules on exporting new cars as “used.” Under a notice issued on November 14, exporters must now obtain an after-sales service confirmation from the vehicle’s manufacturer before they can export any car registered for less than six months.
Zero-kilometer used cars refer to vehicles officially classified as used but that have been driven very little or not at all. While the new measure does not completely ban zero-kilometer used-car exports, it imposes stricter conditions, particularly regarding authorization and after-sales service requirements.
As competition in China’s auto industry intensifies and production increases, dealerships face inventory pressure. Converting new cars to zero-kilometer used cars for export has become a quick way to release inventory. According to CADA, the dealer inventory alert index in October 2025 was 52.6%, up 2.1% from the previous month, signaling increasing inventory pressure.
The policy emphasizes the direct link between "after-sales responsibility" and "export eligibility." Before exporting short-term registered vehicles, companies must ensure that after-sales service networks and spare parts supply systems are in place to guarantee complete service, even for zero-kilometer used cars, thus avoiding complaints from overseas markets due to a lack of support.
These zero-kilometer cars have become a part of China’s car export market in recent years. According to the China Automobile Dealers Association (CADA), China’s used car exports grew from 4,300 units in 2020 to 430,000 units in 2024.
China primarily exports zero-kilometer used cars to the Middle East and Central Asia, then transships them to Russia. Due to the impact of the Russia-Ukraine conflict, many international brands have exited the Russian market, creating a gap that Chinese zero-kilometer cars have filled. These cars meet the demand for cost-effective vehicles in these regions, offering new-car quality at low prices, making them a key market for Chinese exports.
Li Xiang, Founder and Chairman of Li Auto, revealed on his social media that some of Li Auto’s models have been sold as zero-kilometer used cars in the Middle East, Russia, Kazakhstan, and other regions, without official endorsement. These vehicles have become popular overseas, with some countries marking up prices by tens of thousands of yuan.
"Exporting zero-kilometer used cars overseas disrupts the local market and seriously harms Chinese brand reputation," said Zhu Huarong, Chairman of China Changan Automobile Group, during the 2025 China Auto Chongqing Summit in June.
These cars compete in overseas markets at low prices, distorting local price structures. More seriously, these vehicles often lack adequate after-sales support, leaving overseas consumers facing repair difficulties and parts shortages, thereby damaging the reputations of Chinese automotive brands.
Tang Zhikun, General Manager of Xpeng Motors’ International Business Center, told media outlets at a Shanghai new energy vehicle forum that many overseas markets are tightening regulations on zero-kilometer used car imports through laws and certifications.
For example, from 2024, Russia will require electric and hybrid cars from friendly countries, including China, that are not on the approved zero-kilometer used-car import list to undergo formal certification, adding both time and cost.
Cars imported from Central Asia will no longer enjoy customs clearance benefits, as Russian customs will charge for any cost differences and raise the scrapping tax rate from 70% to 85%, with further increases planned annually. These changes will raise the cost of imported vehicles and reduce profit margins.