It is reported that Great Wall Motor’s wholly-owned subsidiary Chang You Hao Che (Tianjin) Automobile Import and Export Co., Ltd. (hereinafter referred to as ” Chang You Hao Che”) has completed its first 2nd-hand car export business, the first batch of used second-hand vehicles will be sent to Cambodia , Nigeria, Ghana and other Asian and African countries.
“Chang You Hao Che” is actually a Chinese name that means “always has good cars”. It is understood that Chang You Hao Che is a wholly-owned subsidiary of Great Wall Motors invested in 30 million yuan in March this year. In July of this year, it has been registered by the Chinese Ministry of Commerce and became one of the five companies in Tianjin that obtained the qualifications for used car exports. The completion of the first business of second-hand car exports means that Great Wall Motors officially entered the market of used car exports.
In April 2019, the Chinese Ministry of Commerce, the Public Security Department, and the General Administration of Customs jointly issued the Notice on Supporting the Export of Used Cars in Conditionally Mature Areas. Subsequently, the second-hand car export business was gradually piloted in 10 cities including Beijing/Shanghai, and Tianjin is one of them. The used car export business became a hot spot in the Chinese automotive industry.
According to relevant statistics, in the first half of 2019, the cumulative transaction volume of used cars in China was 6.862 million units, an increase of 3.93% year-on-year; the cumulative transaction amount was 433.6 billion yuan, a year-on-year increase of 5.16%. According to the statistics of China Customs Administration, the export volume of used cars reached 560,000 units in the first half of this year, a year-on-year increase of 4%. In other words, the market growth rate of used car business has exceeded the sales of new cars.
2019 is the key year for Great Wall Motors to launch its global market. Now, the joining of used car export business has once again enriched the layout of Great Wall Motors’ globalization strategy and become an indispensable strategic extension beyond the new car business.