1. Core

It is completely late to join the game now, but we can no longer follow suit and do Red Sea business; the industry has bid farewell to barbaric dividends and entered an era of refined and deep cultivation.

The Red Sea Circuit (low-end fuel vehicles are exported to Russia and Nigeria) is seriously involved. Individual investors compete for prices and funds, and novices can easily lose money;

There are still subdivided blue ocean tracks, and there are still opportunities for second-hand new energy vehicles, South America, and Central Asia markets from 2026 to 2027.

The success rate of pure retail investors fighting alone is very low. The safe way to play for novices is to rely on assets, segment models, and target a single country.

2. Current situation of the industry: dividend differentiation

1) The Red Sea where dividends fade (it is not recommended for novices to enter directly)

The export of zero-kilometer quasi-new cars has been tightened by policies, a large number of small and medium-sized businesses have been eliminated, and low-cost internals have become heated;

Russia: Car sources compete for prices and peers maliciously compare prices. Profits are compressed to 3%-5%. Once they are stranded in Hong Kong and policy changes, they will easily lose money;

Threshold: hoarding cars in large quantities, providing their own qualifications, having their own overseas customers, and high funding threshold.

2) There is still an incremental blue ocean (first choice for novices)

Second-hand new energy vehicles

BYD, Geely, and Chery used trams are exported to Central Asia, the Middle East, and South America. Domestic vehicle sources are sufficient, overseas price differences are large, gross profit margins are generally 12%-20%, and the competition is far lower than that of fuel vehicles.

niche national markets

Peru, Tanzania, Uganda, and the five Central Asian countries have friendly tariffs, few peers, and no vicious price wars; especially Peru has low tariffs on used cars and belongs to a high-quality incremental market.

quasi-new joint venture family car

Durable pickup trucks and cars such as Toyota, Honda, and Hailax have long been in short supply, and repurchase is stable.

According to industry data, by the whole year of 2026, the export of real used cars is expected to reach 600,000 units. The proportion of low-end pure fuel models has been declining. The proportion of second-hand new energy is rising rapidly. The market is still expanding. Not yet.

3. Two entry modes (choice between novices)

Model A: Light assets and zero-hoarding cars (first choice, lowest risk)

You don't have to apply for export qualifications yourself, you will rely on a formal and registered export company, and only do intermediate vehicle source docking;

First lock in 1 country +2 - 3 fixed models, only accept overseas confirmed orders, determine purchase based on sales, and do not hoard cars in advance;

We only do vehicle procurement, and all customs declaration, shipping and customs clearance are outsourced to port service providers to minimize financial risks.

Model B: Formal self-built qualifications (suitable for long-term cultivation)

The procedures for handling the export registration of used cars have been fully liberalized;

Supporting third-party testing, vehicle preparation, port warehousing, providing full-chain services, and undertaking bulk orders from overseas wholesalers;

The advantage is that the documents can be controlled by themselves, and there will be no compliance risks such as expiration of temporary licenses or endorsement and locking of cars.

4. Four life-saving bottom lines for newcomers to enter the game

Determined not to blindly hoard cars

Overseas policies can change at any time (such as tariffs, vehicle age restrictions, etc.). If orders have not been locked, do not collect vehicles in large quantities to avoid backlog of inventory

Stay away from mortgage cars, modified cars, and accident cars

Once the customs inspects a detained vehicle, it will not only incur high detention fees, but also directly revoke the export registration qualifications.

There should not be only one model for customer sources

Attracting only scattered small middlemen will only fall into low-cost entanglements. We must deploy overseas and directly connect overseas and local car dealers to obtain long-term stable large orders. (Don't be individual guests. middleman)

Strictly control funds and return payments

Adhere to collecting the deposit first, and then settle the balance before embarking on the ship. Don't collect the money after the goods arrive at the port to avoid overseas buyers not paying.

5. Summary in one sentence

The market continues to grow, with at least 2-3 years left in the window;

The old track (some countries in West Africa with low-end fuel, Russia) has been closed, and novices are not allowed to enter;

Choose second-hand new energy, coupled with those niche countries in South America or Central Asia, which use an asset-light approach to determine purchases based on sales, and now you can still make money steadily when you enter. Then dig deep

Source: Xiong Yu, digital automobile export

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