China commerce ministry has started permitting exports of second-hand cars, marking the nation’s recent move to drive domestic sales and support trade in the world’s biggest auto market.
The move comes after sales in China contracted in 2018 for the first time since 1990s. Amid worries of more decline, Beijing handed out tax cuts previously this year to spur consumer spending.
In its recent bid to prop up the auto sector, the Ministry of Commerce stated it had started permitting used-car exports from ten Chinese cities and provinces which includes Beijing, Shanghai and Guangdong, and that it would provide further support to the sector.
The ministry will begin identifying companies that can handle these exports and has also called for the development of tests to guarantee the quality and safety of second-hand car exports, it included in a statement.
It referred to the potential for used-car exports from China as “huge”, adding that in most developed countries exports represent approximately 10 percent of used-car sales.