As of January 1, 2026, China’s automotive export landscape will shift dramatically with the introduction of a new regulation targeting zero-kilometre used cars. This pivotal move aims to close loopholes that have allowed near-new vehicles to flood global markets without proper oversight, creating significant implications for manufacturers, dealers, and international buyers.

The New Regulation: What You Need to Know

The new rule mandates that any vehicle registered in China for less than 180 days requires additional documentation before it can be exported as a used car. Specifically, exporters must obtain a manufacturer-issued After-Sales Service Confirmation that details the vehicle information and export destination, complete with the manufacturer’s official seal. Failure to comply means the vehicle must meet the 180-day holding requirement, supported by verifiable service records, to qualify as a genuine used car.

Why Zero-Kilometre Cars? A Closer Look

Zero-kilometre used cars, often still bearing factory protective covers and showing minimal mileage, have surged in popularity due to overcapacity in production and aggressive inventory turnover strategies by manufacturers. The domestic market for these vehicles has been estimated at around 1 million units annually, accounting for a significant fraction of China’s used-car sales. However, a staggering 70-80% of China’s used-car exports during recent years have been zero-kilometre vehicles, highlighting the need for regulatory action.

Market Trends and Industry Impact

The recent surge in used-car exports—from just 15,000 units in 2021 to anticipated figures exceeding 500,000 units in 2025—has raised alarms about the implications for both domestic pricing structures and international relationships. Complaints have emerged from foreign buyers regarding insufficient localization, warranty issues, and after-sales support, particularly for advanced technologies prevalent in electric vehicles (EVs).

Regulatory Drivers: Protecting the Industry

Beijing’s decision to tighten regulations stems from a multifaceted need to:

• Protect domestic pricing by preventing new vehicles from being sold at steep discounts through used channels.
• Ensure manufacturers remain accountable for after-sales obligations on exported vehicles.
• Curb unauthorized export practices that bypass official distribution agreements.
• Enhance the international reputation of Chinese automotive brands by reducing buyer complaints about service and support issues.

Looking Ahead: Implications for Stakeholders

Manufacturers will need to adapt by establishing formal procedures for issuing After-Sales Service Confirmation letters, while dealers must navigate new operational challenges. The choices are clear: either secure factory authorization for early exports or hold vehicles for the requisite 180 days, both of which may impact their cost structures.

For international importers, this regulatory shift means potential increases in compliance costs and longer lead times. Some may need to pivot toward importing vehicles that comply with the new regulation, which could reshape the landscape of automotive trade between China and the rest of the world.

As the January 2026 deadline approaches, the automotive industry is bracing for a significant transformation, one that could redefine the dynamics of used-car exports and the responsibilities of manufacturers worldwide.