Tianjin Updates

Tianjin exports second-hand vehicles

(exploringtianjin.com)

Updated: 2019-09-03

North China's Tianjin exported 60 second-hand commercial vehicles late July, marking the first batch of used commercial vehicles exported from China.

Having completed customs clearance in Tianjin, the vehicles, with a total value of over $700,000, were set to be exported from the Dongjiang Free Trade Port Zone in Tianjin to the Port of Apapa in Nigeria.

Tianjin was among the first batch of the pinpointed regions including Beijing, Shanghai and Guangdong to be allowed to conduct such trade, according to the Ministry of Commerce.

On the same day, Guangdong announced to export 300 used cars, involving a total value of $2.5 million, to Cambodia, Nigeria, Myanmar and Russia, most of which are passenger vehicles.

The second-hand commercial vehicles export business is conducive to accelerating the circulation of used automobiles, stimulating the domestic auto market vitality, and deepening economic and trade exchanges with countries involved in the Belt and Road Initiative, according to the Tianjin Commission of Commerce.

The Dongjiang port will be built into the largest used vehicle export base in North China, according to Shen Lei, director of the management committee of the Dongjiang Free Trade Port Zone.

The first batch exports vehicles included leading domestic brands such as JAC, Jiangling, King Long, Foton and Golden Dragon.

Experts indicated that the exports are expected to boost presence of domestic brands overseas.

Zhang Tingting, secretary general of Tianjin Automobile Imports and Exports Association, said the development of China's second hand vehicle export lags behind Japan and South Korea.

"But their exports mainly focus on the passengers vehicles, we have rosy prospects in the commercial vehicle segment.

"Domestic commercial vehicles, including JAC, Jiangling, Foton and King Long, which have made great presence and received widespread praise, in the Belt and Road countries and region, are advised to boost their exports in the second hand segment," she said.

However, both officials and exporters indicated the fledging business is feeling pinches.

Li Jian, director of the Machinery and Electronics Department, Tianjin Commerce Bureau, indicated that China should speed up to release preferential policies in the area, in a bid to catch up with its counterparts.

"For example, more subsidies in environmental protection and the tax rebate have been implemented in other countries dealing with the business ahead of China," Li said.

Li Feng, general manager of the Zhongbei Automobile Co Ltd based in Tianjin, the exporter of the first batch vehicles, said that the exports of China's commercial vehicles should soon fix the headaches in the fuel standards, because some African countries are lagging behind of China.

"They are still at the stage of Euro II or III standards… we have already surpassed the phase, so we have to amend the vehicles accordingly."

They are also urged to soon meet gaps in wholesale sales network, he said.

In addition, he expects the country should help develop new trade and settlement model to help reduce the currency exchange risks.

"Most of the African buyers settle their trade after they check the vehicles and pay in cash, which will bring unpredicable risks in currency exchange."

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