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China Starts Exporting Used Cars to Nigeria, Others

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  • China Starts Exporting Used Cars to Nigeria, Others

China, the world’s second-largest economy, announced plans to start exporting used cars to Africa, Asia and Europe, with Nigeria as the main target for the first 300 cars, the Chinese Ministry of Commerce said.

The ministry said the move is part of its efforts to deepen the Belt and Road Initiative (BRI) and promote stability through foreign trade.

In 2013, China introduced the BRI to enhance its global presence and reach by building infrastructure, investing and contributing to the growth of 152 countries and international organisations in Africa, Asia, Europe, the Middle East and the Americas.

The ministry of commerce said the first batch of 300 used cars with a total value of $2.5 million comprises of “Land Rover, Toyota, Hyundai, Volkswagen, Trumpchi, King Long, Yutong, Zhongtong and WOHO brands and they are being taken to destinations that include the Lagos port (Nigeria), Sihanoukville Autonomous port (Cambodia), Rangoon Port (Myanmar) and Vorsino and Saint-Petersburg ports (Russia).”

In a statement released by the ministry, “Trade in new cars in China last year almost doubled the 13.82 million used cars figure, trading volume of used cars in developed countries, in comparison, was about two times that of new car sales.

“China is hoping to key into this yawning advantage lying beyond its borders. It is estimated that used car exports may fetch about 60 billion Yuan for China in export value if the market is fully opened up. It is also expected the trade would generate higher auto parts and maintenance service exports.

“With all processes done, the first used cars export business in China finally sailed at Nansha Port, Guangzhou, on July 17, 2019 marking a new milestone and economic significance for China’s automobile industry,” the statement added.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.