Intention in the domestic used car market has intensified and profits continue to compress. Going to sea has long become the core track for the industry to break down. Among many overseas markets, Southeast Asia's dividends have peaked and the Middle East market has become saturated. The South American region has become a new golden depression for used car exports, relying on its multiple advantages of heavily loosened policies, huge just-needed gaps, and extremely high adaptability. In 2026, the market potential of the five South American countries will be fully released, and the explosion period for used cars in China has arrived.

01. Market background: There is a huge gap in demand and a serious shortage of local supply

Many countries in South America have a weak foundation in the automobile industry, limited new car production capacity and high import tariffs, resulting in generally high local new car prices and extremely high barriers for ordinary people to buy cars. Data shows that the average price of new cars in mainstream South American countries far exceeds the range of residents 'consumption, with taxes and fees accounting for as high as 50%. Most families have difficulty in affordable brand new vehicles, and used cars have become the best choice for daily commuting and commercial transportation.

At the same time, the replacement cycle of local vehicles is extremely long, and the proportion of old models is extremely high. The market is in urgent need of imported used cars with high cost performance and high-quality vehicle conditions to replace the replacement. For a long time, the used car market in South America has been monopolized by old models in Europe, America, Japan and South Korea. The models are old and the prices are high. However, China's second-hand cars are high-quality, complete in categories, and outstanding cost performance. They perfectly meet the local public's consumption needs and have strong market substitution advantages.

More importantly, the vast majority of countries in South America have left-hand rudder traffic rules, which completely matches domestic models. There is no need to spend high costs on rudder modifications and modifications, and greatly reduce export compliance costs and delivery cycles. This is unmatched by other regional markets. Natural advantages.

02. Policy dividends are released in a concentrated manner, with a clear and long window period

If just demand is the foundation of the market, then the continued implementation of favorable policies is the core booster of the outbreak of the used car market in South America. In the past two years, many countries in South America have intensively relaxed import access for used cars, reduced tariffs, eliminated restrictive taxes and fees, and opened import quotas, clearing core obstacles for China's used cars to go out to sea.

Among them, Argentina's policy dividend is the heaviest and clear, becoming a breakthrough in the South American market: starting from 2025, it will officially implement differentiated tax and fee preferential policies. On the one hand, it will implement a zero-tariff policy for second-hand new energy models with FOB prices of ≤ US$16,000, and will be opened every year. Import quotas for 50,000 vehicles, and the policy cycle lasts for many years; on the other hand, for mid-to-high-end fuel-used vehicles worth US$40,000 to US$73,000, the 20% consumption tax will be directly cancelled, greatly increasing the export profit margin of fuel vehicles.

In addition to Argentina, core South American countries such as Chile, Mexico, Peru, and Brazil have also continued to optimize import policies: entry thresholds continue to be relaxed, vehicle age restrictions are gradually relaxed, and settlement systems are becoming more mature. The overall trade environment in the region continues to be optimized, with clear compliance paths and controllable risks. It completely bids farewell to the previous niche development state of high tariffs and high barriers, and the conditions for large-scale sailing are ripe.

03. Prominent profit advantages, multiple categories of models accurately nuggets gold

The core goal of going out to sea is to stabilize and considerable profits. Compared with the meager domestic bicycle profits, the South American used car market has sufficient premium space, and the dual lines of new energy and fuel vehicles have excellent profit opportunities, which is suitable for the supply layout of different exporters.

New energy used cars have become popular categories: Relying on Argentina's zero-tariff policy, affordable new energy models such as BYD Dolphin, Wuling Hongguang MINI EV, Oula R1, and BYD Yuan have great price advantages in the local area. The price of similar models is more than 30% lower than that of imported cars from Europe and the United States. The net profit of bicycles can reach 12,000 - 20,000 yuan. It is currently the segment with the highest return rate. In 2026, the market gap for compliant new energy used vehicles will continue to expand.

Stable profits and sales of mid-to-high-end fuel vehicles: Jointly invested and domestically produced mid-to-high-end fuel vehicles in the range of US$40,000 to US$73,000, the cost has dropped significantly due to the policy dividend of the cancellation of consumption tax. Adapt to the local demand for mid-to-high-end household and commercial vehicles, with a stable audience and a high repurchase rate, it has become the core category for large-scale shipments.

Compact SUVs are suitable for the global market: Chile, Peru and other countries have complex road conditions. Compact SUVs such as Honda CR-V and Toyota RAV4 are extremely adaptable. They have fast market circulation and low inventory pressure. They are just-needed models with low risk and high turnover.

04. The trend has been set for 2026, and we will seize the best layout period for going to sea

Looking at the global pattern of used cars sailing to sea, competition in the Southeast Asian market is fierce and profits continue to shrink. The European and American markets have extremely high barriers and strict access. Only the South American market is in the triple golden node of early demand explosion, peak policy dividends, and relatively loose competition.

At present, the penetration rate of used cars in China in the South American market is still low, and there is huge room for brand replacement. As policies continue to be implemented and trade links continue to improve, the next 2-3 years will be a golden growth cycle for used cars in South America to go to sea. Merchants that plan ahead of time and accurately position their cards will be the first to seize market gaps and reap the first wave of industry dividends.

written in the end

Second-hand cars go out to sea, those who follow the trend win, and those who go against the trend are tired. Infiltration in the domestic market is a foregone conclusion. Sticking to existing stocks will only fall into low-price competition. Going to overseas incremental markets is the core way out for the industry to break the situation.

The five South American countries have fully opened their policy channels, the gap in just-needed needs continues to widen, and the profit model is clear and stable. There is no need for modifications, tariff reductions, considerable profits, and controllable risks. 2026 is the best time for second-hand cars to enter South America to go out to sea. Only by grasping the general trend and seizing the opportunities can we gain a foothold in the new round of industry dividends and achieve a breakthrough.

Source: Silk Road Gaoshen's Car Going to Sea

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