(China, 20th) — The magazine "Automobile Horizons" under the China Association of Automobile Manufacturers has reported that the Ministry of Industry and Information Technology (MIIT) is planning to implement a policy banning the transfer of new cars as second-hand vehicles within six months of registration.
This report was published on June 25 on the "Automobile Horizons" official website and was republished on the magazine's WeChat public account on Saturday (July 19).
According to the report, in response to the widespread issue of “zero-kilometer second-hand cars,” the Ministry of Commerce reportedly convened a closed-door meeting in May with industry associations and car manufacturers, clearly demanding stricter regulation throughout the process and the establishment of a credit evaluation system. The MIIT is also planning to implement a policy prohibiting the transfer of new cars as second-hand vehicles within six months of registration to cut off profit arbitrage at the source.
Additionally, the China Automobile Dealers Association intends to promote the establishment of a unique export code system for second-hand cars, while companies such as Chery and BYD have already launched accountability mechanisms for dealers who violate registration policies.
So-called “zero-kilometer second-hand cars” refer to vehicles that, although registered, have been scarcely used and have extremely low mileage, often close to 0 kilometers.
According to Reuters, the proliferation of zero-kilometer second-hand cars in China is due to the fierce competition in the world's largest auto market and chronic overcapacity, which has led to a brutal price war lasting for years.
The Dahe Daily has previously reported that on May 28, the Consumption Promotion Department of the Ministry of Commerce held a closed meeting with companies such as BYD, Dongfeng Motor, and Guazi Used Cars, as well as industry bodies, to discuss the “zero-kilometer second-hand cars” phenomenon. The issue sparked heated debate after Great Wall Motors Chairman Wei Jianjun publicly revealed that there were three to four thousand dealers on domestic used car platforms selling “nearly new cars that are transferred immediately after licensing.”
This report was published on June 25 on the "Automobile Horizons" official website and was republished on the magazine's WeChat public account on Saturday (July 19).
According to the report, in response to the widespread issue of “zero-kilometer second-hand cars,” the Ministry of Commerce reportedly convened a closed-door meeting in May with industry associations and car manufacturers, clearly demanding stricter regulation throughout the process and the establishment of a credit evaluation system. The MIIT is also planning to implement a policy prohibiting the transfer of new cars as second-hand vehicles within six months of registration to cut off profit arbitrage at the source.
Additionally, the China Automobile Dealers Association intends to promote the establishment of a unique export code system for second-hand cars, while companies such as Chery and BYD have already launched accountability mechanisms for dealers who violate registration policies.
So-called “zero-kilometer second-hand cars” refer to vehicles that, although registered, have been scarcely used and have extremely low mileage, often close to 0 kilometers.
According to Reuters, the proliferation of zero-kilometer second-hand cars in China is due to the fierce competition in the world's largest auto market and chronic overcapacity, which has led to a brutal price war lasting for years.
The Dahe Daily has previously reported that on May 28, the Consumption Promotion Department of the Ministry of Commerce held a closed meeting with companies such as BYD, Dongfeng Motor, and Guazi Used Cars, as well as industry bodies, to discuss the “zero-kilometer second-hand cars” phenomenon. The issue sparked heated debate after Great Wall Motors Chairman Wei Jianjun publicly revealed that there were three to four thousand dealers on domestic used car platforms selling “nearly new cars that are transferred immediately after licensing.”