China's first port-based used car export service center opens in Shanghai

Shanghai launched China's first port-based used car export service center at the Shanghai Haitong International Automotive Terminal on Nov 20. This service center, established by the Shanghai Waigaoqiao Free Trade Zone Group Co, Ltd, aims to provide seamless, one-stop services for vehicle registration and comprehensive logistics to used car export enterprises in Shanghai and nearby provinces.

As the first used car export inspection site within a port area in China, the service center is set to revolutionize the industry by reducing safety risks and transportation costs associated with multiple vehicle movements, thereby enhancing the overall efficiency of certification services. An official stated that these measures are designed to streamline the export process and improve operational efficiency for businesses involved in used car exports.

"The service center helps every company save the transportation cost of about 500 to 600 yuan ($69.1 to $96.2) per car from the city vehicle management offices to the port," said Zhang Wen, general manager of Shanghai Leiyin Automotive Services Co Ltd. Zhang further highlighted that the simplified process reduces the time required for vehicle export by approximately 10 days, significantly benefiting companies' capital turnover and inventory turnover rates.

The used car export business is a relatively new yet rapidly developing industry in China, having only commenced five years ago. In 2019, to promote high-quality development in foreign trade and stimulate the domestic automobile consumption market, the Ministry of Commerce, the General Administration of Customs and the Ministry of Public Security jointly launched a nationwide pilot program for used car exports.

According to data from the Ministry of Commerce, a total of 275,000 used cars were exported nationwide in 2023, generating an export value of $6.88 billion. Shanghai, as one of the initial pilot cities for used car exports, has seen a continuous surge in demand for used car exports in recent years. This demand has attracted a cluster of enterprises with domestic car sources and overseas markets, establishing Shanghai as a key hub in the industry.

To further stimulate the development of used car exports in Shanghai, the city has introduced 13 measures to promote the industry, including the establishment of this newly-unveiled service center. These measures are expected to bolster Shanghai's position as a leading player in the global used car export market, fostering growth and innovation in the sector.