China to Soon Regulate Zero-Kilometer Used Cars, Introduce New Rules

KatadataOTO – The circulation of zero-kilometer used cars has been unsettling. Especially in the Chinese vehicle market some time ago.

For this reason, the Chinese government plans to regulate the circulation of these products. They will tighten existing regulations.

“With new export compliance rules scheduled to take effect starting January 1, 2026,” wrote a Carnewschina report, Monday (22/12).

Furthermore, it was mentioned that the move was made after rapid expansion in both domestic and export markets.

Photo: Carnewschina

A phenomenon that is considered increasingly disruptive. Especially for pricing and after-sales services.

Moreover, the volume of zero-kilometer used cars in China's domestic market is predicted to reach 1 million units in 2024. Contributing a significant amount, namely five percent.

“This practice is linked to persistent overcapacity in production, as manufacturers and dealers seek to accelerate stock turnover and capital recovery,” they continued.

On the other hand, data on used car sales in China increased from 15 thousand units in 2021 to 436 thousand units last year.

Meanwhile, in 2025 it is estimated to exceed the 500 thousand unit level. Therefore, the government there feels it is necessary to take action.

In addition, the spread of zero-kilometer used cars brings many negative impacts. For example, massive discounts affect pricing at the manufacturer level.

“Four government departments led by the Ministry of Commerce have jointly issued new regulations targeting the export of used cars,” they added.

It is stated that starting next year, every vehicle to be exported within 180 days of its initial registration must be accompanied by an after-sales service confirmation document issued by the manufacturer.

The document must state the export destination. Then, the vehicle information, and it must have the manufacturer's official stamp.

The new policy does not prohibit the export of used cars. However, it raises the compliance threshold by officially linking export eligibility.

Thus, manufacturers are responsible for their after-sales services. This can provide a sense of security to buyers.

Photo: Carnewschina

For your information, zero-kilometer used four-wheeled vehicles occur because dealers have difficulty meeting high sales targets from the manufacturer.

Some brands in China are said to offer incentives to dealers for supplying new vehicles, even if the units are then immediately sold as used cars.

This scheme makes it easier for dealers to reach sales targets and manage stock, especially for less popular models.