The world's largest car exporter is grappling with fierce domestic market competition. The practice of exporting "zero-kilometer used cars" under the guise of new vehicles reportedly distorts sales data.

China's Ministry of Commerce stated that overseas car buyers often do not receive after-sales service or spare parts for repairs. This damages the brand image of some Chinese car manufacturers, who are now pushing for tighter export regulations.

The new regulations target fraudulent registration and export documentation, along with regulatory violations in both China and importing nations.

A used car dealership in China. *Photo: Zhihu*.

Starting 1/1/2026, car manufacturers must provide official guarantees for after-sales service and information on where such services can be obtained. These regulations were posted on the Ministry of Commerce website.

The report did not name specific car manufacturers, though the export of "zero-kilometer new cars" has been reported across many provinces and cities nationwide.

This phenomenon occurs when dealers purchase new cars from manufacturers, register them, and then resell these vehicles to customers at used car prices, despite them having zero mileage. It has emerged in the Chinese market due to a prolonged price war. This method is seen as a potential industry tactic for car manufacturers and dealers to support new car sales as they strive to meet stringent business targets.

According to dealers, these used cars with no mileage are offered at prices up to 30% lower than new cars. While this sales model helps individual companies reduce inventory, it harms the market as low car prices make it difficult for most manufacturers to break even.

My Anh (according to Reuters)