China's Used Car Export Market Analysis: Africa Focus

1. Overview of China's Used Car Export Market

The Chinese used car export market has experienced significant growth since its official launch in May 2019. By March 2024, the market was fully liberalized, with initial export operations starting in key regions including Beijing, Tianjin, Shanghai, Zhejiang (Taizhou), Shandong (Jining), and Guangdong.

From April 2019 to 2023, China exported a total of 367,000 used vehicles worth $8.74 billion. In 2023 alone, exports reached 274,500 units valued at $6.88 billion (approximately ¥43.9 million RMB at current exchange rates).

The market shows balanced exports between new energy vehicles (NEVs) and traditional fuel vehicles, with 138,000 NEVs and 136,000 fuel vehicles shipped. Notably, NEVs accounted for 60.6% of total export value due to their higher average prices.

Chinese used cars now reach over 160 countries and regions, with Belt and Road Initiative partner countries being primary targets and Africa emerging as a market with substantial potential.

2. China's Used Car Exports to Africa (Jan-Sept 2024)

By Engine Capacity:

HS Code 870322:
Total trade value: ~$15.7 billion
Main destinations: Egypt, South Africa, Algeria
Key buyers: Namibia, Tanzania
Major suppliers: Japanese companies dominate

HS Code 870323:
Total trade value: ~$14.61 billion
Main destinations: South Africa, Libya, Egypt
Key buyers: Namibia, Uganda
Major suppliers: Japanese companies lead

3. Auto Parts Exports to Africa (Jan-Sept 2024)

Lubricants: Primarily exported to Tanzania and Mozambique
Spark Plugs: Mainly shipped to Nigeria and Egypt
TopUsedCars.com provides comprehensive export services including parts logistics and customs clearance.

4. Key African Import Markets Analysis

Ethiopia:

Banned fuel vehicle imports since February 2024, focusing on NEV development with low EV import tariffs. Import-dependent market with ~85% used cars.

Egypt:

Only allows left-hand drive imports with strict age/type regulations. NEVs receive tariff advantages in a market where used cars dominate sluggish new car sales.

Nigeria:

Restricts imports to left-hand drive vehicles, banning cars over 12 years old while adjusting taxes. Used cars dominate but new car market is growing.

Angola:

Allows imports of used cars within specified age limits requiring pre-shipment inspection. Chinese brands gain recognition in recovering market with EV promotion policies.

Ghana:

Bans accident-damaged cars and vehicles over 10 years old, requiring compliance certificates. Used cars dominate as government pushes NEV development.

Market Opportunities and Challenges

Africa presents tremendous potential for Chinese used car exporters, but navigating diverse national policies remains challenging. Exporters must monitor regulatory changes closely while improving product and service quality to succeed.

As African economies grow and infrastructure improves, market potential will expand further. However, exporters face challenges including currency fluctuations and increasing competition, requiring adaptation to varied policies and market demands.

Reported by Xiao Mi, TopUsedCars.com Automotive Industry Correspondent