In 2024, China's automobile industry will demonstrate strong development resilience and vitality, and high-quality development will be solidly promoted, becoming a "golden business card" to drive economic growth. The China Association of Automobile Manufacturers recently released data showing that in 2024, China exported 5.859 million vehicles, a year-on-year increase of 19.3%.

According to data, since China launched a pilot program for the export of second-hand cars in 2019, after nearly 6 years of experimentation and exploration, Chinese second-hand cars have been sold to more than 160 countries and regions worldwide. By 2023, the export volume has reached 275000 units, marking the beginning of scale. The Announcement on Relevant Matters Concerning the Export of Used Cars issued by the Ministry of Commerce and five other departments clarifies that the export of used cars will be expanded nationwide from March 1, 2024, opening a new window for the expansion of the main body and the release of potential for the export of used cars. Policy support has provided more opportunities for small and medium-sized enterprises to participate in the export of second-hand cars, further promoting the overall growth of automobile export scale.

Industry insiders predict that the export scale of second-hand cars in China will reach 400000 units by 2024. The export of second-hand cars will not only become a new force in China's automobile exports, but also a key anchor for optimizing the structure of the domestic automobile industry.

ZMEV Limited is a new energy vehicle brand focusing on going to sea. The export of complete vehicles and parts is one of ZMEV Limited's main businesses. Liu Yanjun, vice president of the company, said, "In the field of second-hand vehicle trade, we have established a mature international route for customs declaration and shipment of complete vehicles, forming stable routes such as' Shanghai Dubai, Guangzhou Djibouti, Qingdao Mombasa, Khorgos Almaty ', and at the same time laying out overseas warehouses such as Dubai and Ghana to further cultivate overseas. At present, we have formed trade cooperation with more than 40 overseas countries, and Africa is our important market."

While the second-hand car industry is accelerating its overseas expansion, export enterprises are facing many challenges in cross-border finance, including difficulties in receiving payments, high costs, and significant financial pressure. It is very difficult for us to receive payments due to the lack of secure and stable payment channels, resulting in low transaction efficiency. Many second-hand car transactions in overseas markets still use traditional cash remittance models, resulting in exchange losses and transaction fees becoming a large expense, which is likely to be passed on to our buyers. In addition, for small businesses, the payment period for second-hand car export transactions often lasts for more than 2 months, and as traders, we must advance funds, which puts great pressure on capital turnover, "said Li Miao, the head of a second-hand car export enterprise in Tianjin.

It is understood that enterprises engaged in the export of second-hand cars, especially small and medium-sized enterprises, have difficulty obtaining cross-border financial services provided by traditional financial institutions, and have long faced difficulties such as account opening, payment collection, and high costs. Due to the fact that traditional financial institutions mainly serve large multinational corporations, their anti money laundering risk control models are also developed by such enterprises. When facing small and medium-sized enterprises with relatively diverse transaction characteristics, how to efficiently and cost effectively obtain sufficient data and information, and accurately control risks has become an unresolved issue for traditional financial institutions.

To solve the above problems, XTransfer, a one-stop cross-border financial and risk control service company for foreign trade enterprises, has created an anti money laundering risk control infrastructure for small and medium-sized enterprises since its establishment. With the help of AI, big data technology and other efficient anti money laundering risk control audits, XTransfer cooperates with globally renowned financial institutions to provide convenient cross-border financial services for small and medium-sized foreign trade enterprises. Currently, over 600000 companies use XTransfer for cross-border trade settlement.

For the second-hand car export industry, we delve into business scenarios and rely on strong global financial cooperation and anti money laundering risk control capabilities to provide safe, compliant, efficient, and low-cost cross-border financial services, improve the efficiency of second-hand car export trade settlement, and alleviate the financial turnover pressure of trading enterprises, "said the relevant person in charge of XTransfer.

Article source: Economic Daily News Client