Is there a new way to export used cars?

When it comes to China’s automobile industry, it seems that there is no better description than the term “rising star”, because we have just experienced more than 60 years of development in the history of our establishment, and we are still pediatrics in terms of hundreds of years of history in Europe and America, but Judging from the number of possessions and development momentum, the global position of my country's auto industry and auto market cannot be underestimated.

The development of new cars to a certain stage requires a complete second-hand car market to ensure better circulation in the industry. This is a stage that must be experienced in the development of the automobile industry. Judging from the attention of the national government and the urgent needs of the industry in recent years, if it can Smoothly revitalizing the export of used cars to win overseas markets, then the impact on the automotive industry will have epoch-making significance.

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● The growth rate of domestic autos has slowed down. Emission upgrades promote industry upgrades. There is only one dead end for eliminated vehicles?

In the past 30 years, with the development of my country's comprehensive national strength, the automobile industry has achieved unprecedented development. But from the second half of last year to the present, the sales of cars have become worse than before.

Many industry professionals believe that China's auto market is currently in a declining stage, and they have a foreboding that China's auto market will generally be at a slow or declining micro-growth stage in the next 10 years.

At the same time, with the implementation of the blue sky defense war and the upgrading of emission standards, the national promotion of the sixth state is bound to speed up the elimination and scrapping of state three vehicles. From the truck industry alone, 2008 to 2014 is the time for my country to implement the National III diesel truck emission standards. During this period, the number of newly sold diesel trucks in my country reached more than 21 million, which means that at least More than 20 million second-hand cars were produced.

None of this batch of National III diesel trucks has reached the 15-year obsolescence period, and the nearest one is only 5-6 years of operating life. The mileage of the vehicles is not high, and the vehicle conditions can basically meet the normal transportation requirements. Scrap disposal is undoubtedly a waste and loss of resources for car owners and the industry.

Where should the National III trucks be eliminated? Is there really only a dead end? Whether we can find another way, this is the most concerned issue in the industry.

● Take Africa as an example to talk about the used car market in overseas emerging countries. Old cars may have new opportunities

Some people say that when the automobile industry develops to a certain stage, it will become more and more difficult to rely solely on the domestic market to realize circulation. Looking at the world, Africa, Central and South Asia, Mongolia and other emerging countries have a sharp increase in the number of cars.

Let's take Africa as an example to see how likely it is for Chinese used cars to go global.

First of all, from the perspective of international relations, Africa has always been an important partner of China and an important area on the extension of the “Belt and Road” initiative.

From 2010 to 2018, the growth rate of China's investment flow in Africa was basically higher than the growth rate of China's foreign investment flow, especially after 2016, China's foreign investment flow began to show a decline, while the growth rate of investment flow in Africa is still obvious Promote.

Looking at the local demand in Africa again, according to statistics, the average economic growth rate of Africa from 2000 to 2012 exceeded 5%, and the average economic growth rate from 2012 to 2018 was 3.8%, which is among the highest in the world. At the same time, there is no family planning in Africa. In 2010, the population was only 800 million. Now it is close to 1.3 billion. According to the current birth rate, it will reach 2.5 billion in 2025.

According to current rough statistics, every 23 people in Africa own a car, and there are about 55 million cars in possession, but the average annual growth rate is about 20%. At the same time, most countries in Africa have underdeveloped auto industries and the auto market mainly depends on imports. And most of them are used cars.

According to statistics from the United Nations Environment Program, 96% of the imported cars in Kenya in 2016 were used cars. The ratio of new and used car sales in Nigeria is as high as 1:131. The huge potential of the used car market in Africa is an unquestionable fact. From the perspective of vehicle prices, my country's second-hand car definitely has unparalleled advantages compared to Japanese, American, European and other established automobile industries.

Finally, we return to our business and let us look at the opportunities for second-hand trucks.

According to personnel who have worked in Africa for many years, countries in Africa have realized the importance of infrastructure construction to the entire country in recent years and have begun to vigorously support infrastructure construction such as hydropower projects, highway construction, and airport construction. At the same time, judging from the stock of my country’s direct investment in Africa, data released by the Ministry of Commerce shows that as of the end of 2018, my country’s stock of direct investment in the entire non-industry exceeded 46 billion U.S. dollars, of which the stock of investment in construction and mining totaled 252.4 Billion US dollars, accounting for 54.8% of the total. Therefore, engineering vehicles can be seen in the African market.

To give a simple example, in the local special-purpose vehicle rental market in Africa, a 25-ton car crane, the rental fee does not include fuel and other costs, works 8 hours a day, and the daily rental for each car can reach 480 US dollars.

Various data indicate that the overseas second-hand car market is a blue ocean, and what we need to do is to find a way to go out. Of course, if we want to go out, we will naturally face various challenges.

● Japan, the United States, and Europe are preconceived. What should we do if we want to catch up?

my country's automobile industry started late, and the development of the second-hand car industry will naturally lag behind the established industrial countries. Our second-hand car export target markets are Africa and Southeast Asia. Japanese, American, Korean and European vehicles occupy a considerable market share.

According to statistics, Japan’s own car ownership is 74 million, and second-hand car transactions are 6.96 million, of which 1.33 million are exported overseas; the U.S.’s own car ownership is 264 million. The volume is 40.42 million, of which 1.19 million are exported overseas; while my country’s current car ownership is 250 million, and the domestic second-hand car transaction volume is between 13-15 million, and the number of exports that can go abroad is very small. my country's second-hand cars have a long way to go before they can break through the siege and occupy a place in this market.

From the government level, the second-hand car market is much more chaotic than the new car market. Therefore, it is even more necessary for the state to formulate a series of policies and regulations to achieve "capable management" and "competent management."

In terms of “capability management”, policies must be adopted to enable the industry to implement laws to follow and standardize operations to ensure the healthy and orderly development of the industry. In terms of “capability management”, a series of administrative approval reforms are required to provide export companies with various Convenient policies have created a good business environment for the development of the second-hand car industry.

From the perspective of the industry, in my country’s second-hand car field, it is urgent to introduce relevant industry standards to centrally regulate the market, and to change the current situation of chaos to the greatest extent. The three-party testing capability ensures that every second-hand car that goes out can produce a word-of-mouth effect.

Of course, the most important issue is that after vehicles are sold, they must have complete service capabilities to ensure that the supply of parts and maintenance services can keep up. Otherwise, the more vehicles sold, the more problems will only be caused. Accidentally rose to diplomatic issues. While improving service capabilities, it is bound to promote the development of parts and local maintenance industries, and bring a series of derivative industries to promote economic development and employment. Why not do such a good thing?

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