China cracks down on exports of ‘zero mileage’ new cars exported as used

BANGKOK AP China has moved to crack down on exports of zero mileage new vehicles being exported as if they are used a tactic that has allowed a few of its automakers to exaggerate their sales content and claim tax rebates and other benefits The tighter regulations apply to exports of cars within days of when they are registered China has become the world s largest exporter of vehicles as its automakers struggle with excess competition in their home arena The zero mileage auto exports are thought to distort sales records to make it look as if more of that excess inventory is being sold Overseas buyers of such vehicles often are unable to get aftersales services or parts for repairs damaging the brand image of particular Chinese automakers that have been pushing for tighter regulation of exports the ministry reported The new rules target falsified registration and export documents and violations of regulations in both China and countries that import the vehicles Beginning Jan automakers will have to provide formal guarantees of after-sales organization and information about where such services can be obtained according to the regulations posted on the Commerce Ministry s website The statement did not name any specific automakers though such exports have been shared for various provinces across the country Source