The Middle East's consumption of China's second-hand car exports shows a rapid growth trend. In recent years, with the economic development in the Middle East and the increasing consumer demand for automobiles, the market share of Chinese second-hand cars in the Middle East has gradually expanded.
The preference of consumers in the Middle East for Chinese second-hand cars is mainly reflected in the following aspects: first, affordable prices, second, good condition, and third, high brand awareness. In addition, due to the road conditions and climate characteristics of the Middle East, consumers also prefer four-wheel drive vehicles and performance vehicles.
UAE regional policy
1. Second-hand car market situation
The United Arab Emirates is a left-hand drive country, and the number of cars per 1,000 people is approximately 354. Second-hand cars are mainly imported through ports such as Jebel Ali, ABU DHABI, and Sharjah. As the international trade center for second-hand cars, Dubai, the largest city in the country, has also established a free zone, Dubai Auto City, focusing on the export business of second-hand cars.
(1) Cost advantage. On the one hand, the UAE does not need to pay a 5% tariff when exporting second-hand cars to GCC countries. Exporting cars to non-GCC countries requires paying different tariffs based on engine displacement. On the other hand, the United Arab Emirates provides preferential policies such as exemption of corporate income tax, exemption of personal income tax, and exemption of import and export duties for 50 years for foreign-invested companies settling in Dubai Auto City.
(2) Convenient transportation. The United Arab Emirates is located between Central Asia and the African continent. As an important transit point for international second-hand car exports, it has abundant sea and land transportation routes. At the same time, local second-hand traders in Dubai also have close economic and trade cooperation with the African market and have a large number of African market resources and channels to promote the sales of exported used cars.
(3) The market is mature. Dubai's second-hand car market services are very complete, covering the entire process of second-hand car re-export trade, including second-hand car trading, transportation, customs clearance, repair and modification, maintenance, testing, quality assurance and evaluation, and dealers will issue quality guarantees to guarantee the vehicle's engine and other key Regarding the quality of the parts, if the buyer is dissatisfied with certain facilities of the vehicle, the dealer usually has its own repair parts factory to refurbish or replace the parts with new ones for the customer. In addition, the topography of the UAE is dominated by deserts, and domestic vehicles are mainly cars, which is highly compatible with the second-hand car market in Africa and Central Asia.
2. Used car import policies and regulations
(1) Import policy: The UAE allows the import of second-hand cars, but the age of the cars must not exceed four years. Both left-hand and right-hand drive vehicles can be imported, but right-hand drive vehicles cannot be registered in their country and cannot be driven on the road, but they can be re-exported. All vehicles must be inspected or assessed by UAE Customs upon arrival in the UAE.
(2) Vehicles prohibited from import: vehicles that have been used as taxis or police cars, scrapped cars, accident cars, over-train vehicles, vehicles with blisters, and vehicles with tinted windows (otherwise they will be fined and required to replace the windows that meet the requirements) are prohibited from import .
Tax policy: Second-hand cars imported into the UAE are subject to a 5% tariff and a certain proportion of value-added tax. After the customs inspects the vehicle, it will verify whether the export declaration value is correct. If it is inconsistent, the difference will need to be paid.
(3) Documents required for import: Documents required to import second-hand cars include original bill of lading, export certificate (certificate of ownership) issued by the Ministry of Transport, purchase/commercial invoice, passport copy, UAE residence permit or visa page copy (in Signature in passport), Letter of Authorization (customer will obtain upon arrival of vehicle in Dubai), name on vehicle ownership document should be same as name on visa, vehicle condition report provided at port of shipment, and insurance policy.
Generally speaking, the Middle East's consumption of China's second-hand car exports shows a rapid growth trend, and market demand is gradually becoming stronger. In the future, with the further development of the economy in the Middle East and the increasing consumer demand for automobiles, the market share of Chinese used cars in the Middle East is expected to continue to expand.
In addition, some countries in the Middle East are also actively promoting the development of the new energy vehicle industry to provide consumers with more choices and support. For example, the UAE government has formulated a "green travel" strategy to encourage residents to use new energy vehicles and provide a series of preferential policies. These measures provide strong support for the market promotion of Chinese new energy used cars in the Middle East.