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

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.

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