How does the export of used cars become a new highlight in foreign trade?（part two）

2024 12/26

Rationally address various challenges：

 

Although the overall situation for used car exports is positive, Liao Zhiyong warns that domestic companies should be keenly aware that used car exports still face many issues and challenges, such as the complex and volatile international environment, increasingly intense domestic competition, overseas standard alignment, brand building, and after-sales service. Firstly, the international environment is complex and changeable, with regional conflicts affecting import and export trade, so export companies must be capable of dealing with complex international situations. Secondly, the trend of internal competition among export companies is gradually becoming apparent, with phenomena such as product homogenization, lack of transparency in vehicle conditions, and odometer tampering emerging one after another. The industry should continuously strengthen self-discipline and operate with integrity. Thirdly, in terms of systematic construction, domestic infrastructure is relatively well-developed, but overseas service networks and financial support systems still need to be established. At the same time, there is a deficiency in credit ratings for export companies and credit data for overseas companies. Tian Tian, Deputy Secretary-General of the China Automobile Circulation Association, stated that in addition to the complex and changing international situation, adjustments to automobile import policies in export destination countries have a significant impact on trade. For example, Russia has adjusted its tariff policies several times; many Central Asian countries have imposed restrictions on imported vehicles; Jordan in West Asia has increased tax rates on imported pure electric vehicles and requires relevant Mac certification. In addition, various trade credit risks and exchange rate risks in international trade cannot be ignored, such as used cars shipped to Russia, but due to a significant devaluation of the Russian currency, many companies that have not yet received payment have suffered considerable losses. Therefore, companies should be cautious in various customs affairs and procedures to avoid overseas buyer credit risks and exchange rate risks. It should not be overlooked that the domestic used car export sector faces the issue of an incomplete supporting system, especially in terms of financial support, which needs to be strengthened. Japan and South Korea's new and used car exports are accompanied by a corresponding financial system, such as Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, and Mizuho Bank, which go global with Japanese enterprises. Tian Tian suggests that Chinese companies can strengthen communication with banks that have an international background and experience in automotive foreign trade to secure bank credit, remittance settlement support for used car export business, and to have their export companies' creditworthiness rated.

 

Collaborate in 'going global' and reject disorderly competition：

Faced with new domestic and international situation changes, Liao Zhiyong suggests that used car export companies should focus on the following key points: First, they should seize opportunities and actively explore international markets. Make full use of national policy dividends, deeply understand the laws and regulations, consumption habits, and demand characteristics of the target market, accurately position, and implement precise policies. Change the previous extensive management and simple trade mindset.

 

Second, they should strengthen cooperation to avoid cutthroat competition and achieve mutual benefits and win-win situations without resorting to price wars. If competition relies solely on price, it will only lead to heavy losses for both sides. At the same time, they should also strengthen exchanges and cooperation within and outside the industry, build a supply chain system together, collaborate, share resources, seek common development, and jointly create a used car export brand with international competitiveness. The overseas market is vast, with opportunities in every region and every niche market. Chinese companies should not swarm to the same place, such as Russia and Central Asia, where there is good performance, leading to disorderly competition. Different companies should leverage their strengths, utilize their advantages and resources, work together to explore overseas markets, and face the fiercer competition abroad together.

 

Third, they should focus on innovation to enhance core competitiveness. Companies should continuously innovate in product selection, value-added services, and marketing strategies to increase the added value and market competitiveness of used car export products. Future competition will not be limited to price but will also involve after-sales, spare parts and related services, brand promotion, sales channels, and even autonomous driving and AI technology, all of which will enhance the added value of products and services and the comprehensive competitiveness of the enterprise.

 

In addition, used car export companies must strengthen their internet promotion capabilities. Currently, domestic car merchants lack overseas customer resources. If used car export companies can cooperate deeply with internet companies, build their own independent websites, and form a group of export merchants' independent websites, each targeting different products, different fields, and different keywords, the overall traffic can be pooled together. They can interface with overseas customers externally and with a vast array of domestic car sources internally, building a Chinese car export traffic system. It will be like the entire commercial system of TikTok, forming a model where everyone contributes and benefits. Companies can earn money from traffic if they have traffic, from sales if they have sales capabilities, and from related supporting services if they can provide them. In this way, the entire used car export system will be unblocked.

 

（Reprinted from China Automobile News Network）