Major Events | China-Egypt "Sea Used Car Road" is about to open

Major Events | China-Egypt "Sea Used Car Road" is about to open
In 139 BC, when Zhang Qian led more than 100 people to set off westward in a hurry, he certainly would not have thought that the dusty road he stepped on was named "Silk Road" by German geographer Richthofen after 2016, and became a super symbol widely accepted and used by scholars and the public all over the world. It is even more impossible for him to think that after 2160, a group of entrepreneurs with the same adventurous and pragmatic spirit as him will plan to open up the "sea second-hand car road" from China to Egypt more than 3200 miles away from his departure ".

Second-hand car exports: the inevitable "double cycle" pattern

According to data from the Ministry of Public Security, in the first half of 2021, my country's newly registered motor vehicles were 18.71 million, a record high. As of June 2021, the number of motor vehicles in the country reached 0.384 billion, of which 0.292 billion were cars. In terms of quantity, China's motor vehicle ownership occupies the first place in the world, and the car ownership ranks first with the United States. For the world to build a huge second-hand car inventory, but also for China's second-hand car exports to form an inevitable trend.

According to relevant personnel of the Ministry of Commerce, the export of second-hand cars is an important measure to do a good job in the steady growth of foreign trade, an important way to deepen the construction of "Belt and Road Initiative", and an innovative form to accelerate the construction of a "double cycle" pattern. It is conducive to stimulating the vitality of the domestic automobile consumer market and promoting the healthy development of China's automobile industry. According to my country's existing second-hand car development model and volume, the export of second-hand cars can not only drive the development of the automotive aftermarket, but also promote the strategic adjustment of automobile manufacturers, allowing more vehicle companies to get involved in the second-hand car business. In April 2019, the Ministry of Commerce, the Ministry of Public Security, and the General Administration of Customs issued the ''Notice on Supporting the Development of Second-hand Car Export Business in Areas with Mature Conditions'', taking the lead in supporting the development of second-hand car export business in 10 areas with mature conditions, including Beijing, Tianjin, Shanghai, Zhejiang (Taizhou), Shandong (Jining), Guangdong, Sichuan (Chengdu), Shaanxi (Xi'an), Qingdao, and Xiamen. In November 2020, the Ministry of Commerce and the Ministry of Public Security once again jointly issued a circular to further expand the scope of the region to carry out the export business of used cars. Together with the first 10 provinces and cities launched in 2019, there are 30 regions in the country that carry out second-hand car export business, covering 25 provinces (autonomous regions and municipalities directly under the Central Government).

Since the launch of second-hand car export work, with the joint efforts of the government, enterprises and all parties, my country's second-hand car export has achieved certain results: the export scale has grown steadily, the domestic procurement system has been gradually established, the supporting service functions have become increasingly perfect, and international exchanges and cooperation have become more frequent.

Africa: The present and future of used car exports

In recent years, emerging economies including India, Malaysia, and China have not only seen a sharp increase in the number of new car licenses, but the growth of second-hand cars has exceeded new car sales, and the market is stable and optimistic. From the perspective of the global structure, it is difficult for Chinese second-hand cars to enter Europe. Asia is dominated by the Japanese system and Latin America is dominated by the American system. Finding a breakthrough in Africa seems to be the best way out for Chinese second-hand cars.

Africa is home to 15 per cent of the world's population, but its car sales account for less than 2 per cent of global car production. The African car market is heavily dependent on imports, mainly second-hand cars from Japan, Europe and the Middle East. Data shows that in 2019, used car sales in Africa were more than twice the sales of new cars. West Africa imports more than 900000 used cars every year, 96% of Kenya's imported cars are used cars, and the ratio of used car sales to new car sales in Nigeria is 4: 1.

In recent years, Chinese second-hand cars with beautiful appearance and low price have gradually gained the favor of African consumers. The data of the General Administration of Customs support this judgment: the first year of the three departments jointly issued a document to support the second-hand car export pilot, that is, at the end of 2019, China has exported a total of 3036 second-hand cars, with an export amount of US $14.86 million and an average export unit price of about US $4900. The main export countries include more than 30 countries and regions around the world, including Benin, Djibouti, Angola, Nigeria, Cambodia, the United Arab Emirates, Sudan, and Kyrgyzstan. Among them, countries along the "Belt and Road" account for nearly 20%, and African countries account for nearly 80%.

What is more exciting is that in the long run, the world has confidence in Africa's economic development. With the improvement of residents' consumption power, tomorrow, private cars will no longer be a luxury, but a daily necessity.

Egypt: A Restricted Blue Ocean Market

In the view of the African Development Bank, Egypt belongs to the mainstream automobile consumer market in Africa with "annual sales of more than 200000 new cars and stable growth. Similarly, the volume of the used car market in Egypt is also considerable. According to the survey data of Egypt's TEDA Special Zone Development Company, Egypt, which has the leading level of automobile industry in Africa but far lower than China, imports nearly 100000 second-hand cars every year. This is an amazing data both in terms of Egypt and in Africa as a whole. Moreover, driven by the government's vigorous economic development, Egypt's auto market is still growing at a rate of about 20% per year.

It seems that Egypt can be described as a Canaan American land for Chinese used car exports. Actually, it's not that simple.

24 countries and regions in Africa prohibit the import of second-hand cars that are more than 10 years old; 16 countries and regions levy consumption tax based on the age of the car, and the tax increases with the increase of the age of the car; 10 countries and regions prohibit the import of second-hand cars that are more than 5 years old, and impose huge taxes and fees on imported second-hand cars......

But relative to Egypt and other four countries to implement a comprehensive ban on second-hand car imports, the damage of these policies is about the same as scraping.

In order to encourage the production of new cars and protect the development of the automobile industry, Egypt has closed the door to the import of second-hand cars, but has reserved a few small windows in other places.

A study by the Egyptian TEDA Special Zone Development Corporation found that there are special exceptions to the market opening policy for the import of used cars in Egypt:

Egyptians working abroad for their own use

Medical Use (for people with disabilities)

Used energy-saving electric vehicles

Truck (cockpit part)

For enterprises with bright eyes, these small windows are bright enough.

TEDA Cooperation Zone: The platform is full of possibilities.

In the core area where Egypt's national strategy "Suez Canal Corridor" and "New Capital Economic Belt" meet, and 2 kilometers away from Egypt's most modernized Insuhana Port, it is a national level known as a "model of China-Egypt cooperation". Economic and trade cooperation zone-China-Egypt TEDA Suez Economic and Trade Cooperation Zone. The TEDA Cooperation Zone has attracted much attention from the Chinese and Egyptian governments and enjoys the honor of being jointly unveiled by the leaders of China and Egypt. Its economic and social benefits are remarkable, attracting more than 100 enterprises into the zone, directly employing about 5000 people, and more than 30000 people driven by industry.

In December 2020, the TEDA Cooperation Zone received official approval from the Egyptian General Customs Administration, allowing it to engage in empty and heavy container storage, bonded goods storage business, and designated Suez Customs for operational jurisdiction and customs supervision. At the same time, the Egyptian government began to clean up the ports engaged in the import of second-hand cars-with the formal implementation of the established policy, only TEDA Cooperation Zone will have the qualification of automobile import trade and logistics storage in the future.

When it is used. On the basis of sitting on policy advantages, the TEDA Cooperation Zone has consolidated its marginal fortress in an all-round way.

Establish a bonded warehouse of about 100000 square meters, including a public bonded warehouse, an export distribution export supervision warehouse, an import and export commodity display and trading hall, and an import and export commodity logistics distribution center.

Cooperation with China-Egypt head logistics enterprises to provide customers with efficient customs clearance, logistics and other one-stop services.

Liaise with well-known financial institutions and banks in China, Egypt and the Middle East to tailor financing solutions for enterprises and partners in the region.

Use positive influence to expand the circle of friends in the Egyptian market, accumulate customer resources, and build an effective marketing team.

Fellowship of the Egyptian Association for the Disabled, so that second-hand cars imported into Egypt is not only legal compliance, so that vehicle sales are more direct and rapid.

The park's "file upgrade" is a simple word, and when it comes to the body, it is a series of solid combination punches, boxing to the flesh.

However, the "ambition" of the TEDA cooperation zone is not in this. The purpose of the TEDA cooperation zone is to build a platform, build a wide range of professional partners, accept all rivers, and gather the efforts of all families to make the whole industrial chain of second-hand cars "collection, testing, export, shipping, import, sales and after-sales" smooth and self-consistent. It is the purpose of the TEDA cooperation zone to open up the "road of second-hand cars on the sea" between China and Egypt.

At present, the basic pattern of this major initiative is ready, and it is just around the corner for the partners to set off its cover, stunning four.

Zhang Qian, who has made great contributions to Bo Wanghou, is qualified to sigh with emotion: those who sow with tears will reap with smiles.

TEDA Cooperation Zone "China Used Cars Exported to Egypt" Business Welcome All walks of life to Join