China has launched a crackdown on the export of ‘zero mileage’ new cars falsely presented as used, a practice that some automakers have used to inflate sales figures and secure tax rebates.
Zero-mileage cars are brand-new vehicles that have barely been driven, typically only for testing, transport, or display.
Some manufacturers or dealers register these cars as sold and then resell them as used, even though they haven’t been genuinely used. This practice allows them to take advantage of benefits intended for second-hand vehicles, such as tax breaks or export incentives.
According to a notice released by the Ministry of Commerce on Friday, beginning next year, exporters will be required to demonstrate that after-sales service is available at the destination of vehicles registered within the past 180 days. Car manufacturers must verify the availability of these services.
The notice also mentioned that local commerce authorities will tighten supervision of export license issuance and ensure exporter compliance. As per the notice, the new regulations aim to maintain fair competition in the automotive sector and support the sustainable growth of used car exports.
China has emerged as the world’s leading vehicle exporter, driven in part by intense competition within its domestic market. The practice of exporting zero mileage cars—new vehicles passed off as used—is believed to distort sales figures, creating the appearance that surplus inventory is being sold.
According to the ministry, overseas buyers of these vehicles often lack access to after-sales services or spare parts, which has harmed the reputation of certain Chinese automakers and prompted calls for stricter oversight.
The new regulations focus on preventing falsified registration and export documentation and breaches of rules both within China and in importing countries.
The stricter regulations align with industry expectations and provide exporters a one-month grace period, the China Auto Dealers Chamber of Commerce said. The organization also urged exporters to adhere to the rules to support sustainable long-term growth in the sector.
According to a Reuters report from June, around 90% of the 436,000 used passenger and commercial vehicles exported by China in 2024 were believed to be zero-mileage cars.
BUSINESS GENERAL | U.S. and South Korea Finalize Investment and Trade Deal
