China started to export used cars on the background of the collapse of the new car market

13 May 2019

The Chinese government prefers, what the Chinese used machines bought by foreigners, clearing Beijing to Shanghai

The Chinese authorities since may 5 this year, has allowed export of used cars outside of China, that ought in their opinion to stimulate the sales of new cars in the domestic market.
According to the Agency "Xinhua" the first ten administrative units have received permission for export of used cars came, of course, Beijing and Shanghai, where the environment has long been to put it mildly a huge problem.

Chinese Ministry of Commerce on Monday issued a statement which States that the potential for development of an export market of used cars from China are very high (who would doubt – quite a commute car for scrap is a very attractive commodity to third world countries and fourth world, in the automotive industry deprived, and in countries with such "oterdoom" how Russia is willing to continue wearing the Chinese "autoblock" there are many – ed.).

The Agency said it will work to improve market regulation and services in support of export pre-owned in conjunction with the Ministry of public security and General customs administration of China.

Last year the secondary market of cars in China amounted to about 13,83 million, which is, however, less than half the rate of sales of new cars.

Sales of new vehicles in China by 2018 fell for the first time in 28 years. According to the China Association of automobile manufacturers (CAAM), the shipment of vehicles of all types, dealerships have decreased in the past year by 2.8% – to 28.1 million the Total drop in sales of passenger cars according SAAM was 6 per cent, to 22.7 million, which also was the first time in 20 years. This year's performance is also not happy – minus 14% in February, from -5.2% in March and -14,6% in April, which was the 10th month of falling sales in a row.

In terms of market impact as the growth slowdown, the PRC's GDP and the consequences of a trade war between China and the United States. By the way, last Friday the President of trump instead of signing "world" with Beijing imposed import Chinese products anti-dumping duties on $200 billion and initiating the Chinese penalty is still worth over $340 billion.

Automakers have been cutting prices in China as the government reduced taxes to stimulate consumer spending. Representatives of CAAM said that the buyers, however, are waiting for more favorable prices, which hinders sales.

At the April sales figures were also affected by the fact that some of the Chinese province ran forward with the introduction of more stringent emissions standards, which increased uncertainty in expectations among manufacturers.

Meanwhile, sales of NEV (rechargeable hybrids and electric cars plus vodorodnaya) in China, according to the CAAM, in April increased 18.1 per cent compared to the same period last year, amounting to 97 thousand

The growth of this segment last year amounted to almost 62%, which was the more contrast against the background of lower overall sales of cars.

This was due to the implementation of 5-year plan of state subsidies sales of vehicles NEV and stimulate innovation launched in 2016.

Now, Beijing has turned 180 degrees, believing that the development of this segment enough for mandatory "carbon credits" and a solid percentage of electric vehicle sales major automakers, and now intends to gradually phase out program benefits and plans to phase out subsidies for NEV after 2020 against the background of criticism that some producers have become overly dependent on state support..