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June 25, 2025

Chinese Carmakers Have Been Exporting New Used Cars Since 2019


Could you be buying a brand-new but used Chinese car? That might be the danger as Reuters has uncovered both Chinese state media reports and government documents stating that carmakers have been exporting so-called “zero mileage used” cars to markets including Asia and the Middle East.

Worst still, the practice of selling fake used cars is being encouraged by regional governments in China to meet ambitious economic growth targets despite top Communist Party leaders calling for “tough regulatory actions.”

The tactics to ease the export of zero-mileage cars include creating extra licenses for the export of zero-mileage used cars, fast-tracking tax rebate claims, investing in export infrastructure, simplifying paperwork, to allocating extra quotas for local vehicle registrations, to setting up free warehouses for zero-mileage used cars close to China’s land and maritime borders.

Reuters has identified 20 local governments in China—including major export hubs like Guangdong and Sichuan—that support the scheme.

Cities such as Shenzhen, pledged to expand the export of zero-mileage used cars as part of efforts to reach an annual target to export 400,000 vehicles of all kinds while in Guangzhou, they’re accelerating the export of zero-mileage gasoline vehicles by allocating extra quotas for local registrations that are otherwise capped to mitigate traffic congestion and air pollution in the city.

The zero-mileage used car export market works like this: as a fresh car emerges from the assembly line, an exporter buys the car either directly from the automaker or from a dealer, registers it with a Chinese license plate, and then immediately marks it as a second-hand car for shipping abroad. Along the way, the automaker books the car as sold and logs the revenue.

The scheme, showing rapid growth in both sales and employment, can bring about promotion for local officials or unlock new funding while missing economic targets can lead to demotions of local officials.

The practice of exporting zero-mileage used cars began sometime after 2019 when China allowed used cars to be exported to other countries. However, because Chinese auto industry output is far outpacing demand, it has spurred automakers there to “dump” their vehicles elsewhere to meet quotas and targets.

The China Automobile Dealers Association estimates that out of the 436,000 used passenger and commercial vehicles exported by China last year, 90 percent are estimated to be zero mileage. That means that six out of every 100 vehicles exported by China would have been a zero-mileage used car.

Most of the zero-mileage used cars are gasoline-powered and thus less desirable in the Chinese market. But electric vehicles, which are subject to generous government-funded purchase subsidies, also make up a significant portion.

Some countries, concerned with the influx of these zero-mileage used cars, are fighting back.

For example, Russia has issued a government decree effectively banning zero-mileage used cars from brands that already had official distributors in the country. Other countries’ market regulators, including Jordan, are fine-tuning their definition of used cars by mandating a longer period after a vehicle’s licensing or production before it is classified as used.

25 comments:

  1. In essence this a win for the consumer for he is essentially paying for a brand new car at a "used car" price. This is way better than a rampant scheme for used cars here in the Philippines wherein odometers are tampered to show slightly used cars but in essence has been used for hundred of thousands of kilometers.

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    1. common ba mag rollback ng odo dito? :O

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    2. 2nd hand cars Being sold here as brand new is a fraud.

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    3. Used cars sold as zero mileage is a fraud. it means they tampered the mileage to make it zero and sold as zero mileage. Worst for ph is it being sold here as brand new. No china car brands sold here zero mileage but lots of old models being sold here, high probability it could be used cars

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    4. People need to improve their comprehension of the terms being used here. It's right in the article - "... a fresh car emerges from the assembly line, an exporter buys the car either directly from the automaker or from a dealer, registers it with a Chinese license plate, and then immediately marks it as a second-hand car for shipping abroad."

      People are taking this as literally used instead of just "used" on paper. The cars are "fresh" as the article states. Buyers don't lose in this situation. This is purely a failure of the regulations and processes within the chinese market (by the chinese local governments).

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    5. Proof that functional literacy is poor among school graduates. On the other hand, the article should have described the subject as "zero-mileage cars," without appending "used." Commenters are quick to jump on actual used cars being tampered, brought and sold out of China, which could happen with prestige vehicles not from China but from the middle east - an altogether different kettle of fish.

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  2. The Chinese are doing good in evs but somehow they ruin their reputation by going back to old scammy tendencies. Instead of gaining goodwill they ruin it.

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  3. This one is the reverse of 2nd hand cars being sold as brand new. In this article, brand new cars with zero mileage is being sold at a bargain price. Its like taking a P10k loan and yet your lender just let you pay P8k for a full payment.

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    1. Nope, its zero mileage USED car, used means it has already been used, so it has been used and tampered to have zero mileage. USED 2nd hand old models passed as brand new zero mileage and being sold at priced below the real brand new. Buyers would think they got a bargain for a zero mileage brand new car but actually its a used 2nd hand car thats why russia banned it. Its a fraud

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    2. ^

      The article says otherwise, a car fresh directly from the assembly line is bought by an exporter and assigned with a Chinese plate, thus creating the illusion that it is "used" when in fact its brand new, just unwanted (low in demand).

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    3. Huwag tayo magdadala sa ganito balita, especially galing sa western media tulad reuter... this are black propaganda to destroy Chinese cars or products.

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    4. It IS fraud. But the fraud here is done on paper not physically (no tampering) on the car. Just read the article people...

      The first commenter above is correct in that it actually is the opposite of a bad thing (for consumers) in this case. The reason it is being banned in some countries is because it creates unfair competition in the car market disadvantaging new car dealers (because if people know that these "used" cars are essentially brand new why would they buy the more expensive new cars?).

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  4. Brand new Car distributor is not stupid and will not import used cars, they know how to check and pinpoint the car is used or new.
    As for China counterpart they are very much promoting export their product, will strictly protect their quality and brand, not destroying trust in business they have.

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    1. Read again and understand the above article

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  5. If it is supposed to benefit consumers the price must be less 20 % the moment it leaves the showroom. But these old new cars are more expensive here than in china. Now china fanboys who is benefitting? Byd seagull is 450kbin china close to 900k in ph. Wow nice savings we should be thankful we got a zero mileage car

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    1. What a silly take. If I were the middle man buying these cars from China why would I pass all the savings to my customers? If I got a 20% less deal I would absolutely sell it just under market price. I'd probably sell it at 5-10% less than market value kasi sa akin pupunta ung remaining 10-15%.

      Also, it's so pinoy to be given such a good deal (a good EV at 900k) and still demand more (like the japanese are giving you anything close to that). lol

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  6. so essentially what this article says is that it confirms that china government is also a scammer in cahoots with unscrupulous car dealers.

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  7. ...many here don't get it. this car selling practice is dumping with local political consideration....

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  8. people who are overwhelmed by their biases

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  9. I don't get why they have to do that except to book the sale twice and make GDP report look good.

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    1. Rosy sales figures result to high stocks market prices on stocks exchange

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  10. Chinese cars are like most Chinese products. They're crap.

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    1. may mga tao ingit if they see other products selling well.
      Hindi nila naicip because of Chinese cars and product, nakinabang ang consumer.
      Tulad dati ung cellphone na nokia, motorola etc napakamahal, ung simple model ay nasa 10k na, because of China product and cars, mas affordable ng karamihan tao, at napilitan bumaba konti ang japanese cars presyo, pero mataas pa rin ang price nila. mdyo swapang sa kita.

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