CX Daily: China’s Growing Trade of Unused ‘Used’ Cars Threatens Automakers’ Global Expansion

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In Depth: China’s Growing Trade of Unused ‘Used’ Cars Threatens Automakers’ Global Expansion

At a glance, selling more cars overseas seems like the obvious solution for a Chinese automaker squeezed between government incentives to boost sales and production, and a cutthroat domestic market locked in an ongoing price war.

The problem is that formally exporting new cars from China is a complicated, expensive undertaking. It requires dealerships to be open, logistics chains to be established and after-sales services to be guaranteed, all of which drive up the cost of selling the vehicles abroad. China’s government also imposes strict requirements on new car exports — only a car’s manufacturer or authorized exporters can obtain a license to do so.