China's used car exports surge, driven by demand from Central Asia

The Khorgos Gateway, connecting northwest China to Kazakhstan, has become a major export hub for China's pre-owned cars

China’s exports of used cars are witnessing rapid growth, with Central Asia emerging as a key market. The Khorgos Gateway, the world’s largest dry port connecting northwest China to Kazakhstan, has become a major export hub, Shanghai-based Chinese state media Yicai Global reported earlier this week.

 

Last year, the port facilitated the export of 400,300 vehicles, with commercial vehicles accounting for 60 per cent of the total, according to Fu Lei, deputy director of the Port Administration Bureau of the Khorgos Economic Development Zone.

 

Including shipments via railways, total commercial vehicle exports from the port exceeded 400,000 units, marking an increase of over 100,000 vehicles compared to the previous year. The report highlighted that the majority of these were pre-owned vehicles.

 

Initially focused on general merchandise and engineering parts, the port has seen a rise in exports of used vehicles, especially since 2022, when Chinese automakers began targeting Central Asian markets like Uzbekistan. Domestic car brands, overseas traders, and foreign businesses have flocked to Khorgos, capitalising on its strategic location and growing demand in the region.

 

What is leading the used car export demand?

The surge in second-hand car exports is attributed to improvements in government policies and regulatory systems. Since the nationwide rollout of second-hand car export initiatives in March 2023, authorities have streamlined processes like vehicle transfer registration and licensing applications. Local governments have also introduced measures to support businesses and boost their global competitiveness.  ALSO READ: Used car market overtakes new car sales in India: CARS24's report

 

Despite this growth, China’s used car export market still has significant untapped potential. Comparatively, Japan exported over one million pre-owned vehicles last year, while the US and South Korea exported 900,000 and 500,000, respectively.

 

The Chinese commerce ministry aims to further enhance second-hand car exports by fostering sustainable innovation and providing high-quality products and services to international buyers. This is expected to strengthen both domestic and international circulation of used vehicles.

 

China’s biggest used cars exporters

Guangzhou-based Global-Ucar Technology, China’s largest used car exporter, reported a 67 per cent increase in vehicle exports last year. Its second-hand car shipments surged over three-fold, setting new records. Chairman Gan Honglin attributed this growth to the company’s aggressive overseas expansion strategy.

 

Between 2021 and 2024, Global-Ucar established branches in countries like Djibouti, the UAE, and Uzbekistan, targeting East Africa, West Asia, and Central Asia. It also launched showrooms in the UAE and Ethiopia to collaborate with local service providers, ensuring better after-sales support and meeting regional market needs.

 

As Chinese firms continue to expand globally and benefit from policy optimisations, the nation’s pre-owned car export sector is poised for sustained growth, contributing to both domestic economic activity and international trade.