China’s Ministry of Commerce has convened a meeting with key stakeholders from the auto industry to discuss the relaxation of restrictions within the car aftermarket.
The initiative is part of a broader strategy to rejuvenate the nation’s car market.
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As reported by South China Morning Post (SCMP), commerce vice-minister Sheng Qiuping announced plans to implement pilot reforms in car sales and distribution, inviting select cities to participate in trials aimed at enhancing the automotive aftermarket.
“The Ministry of Commerce will work with relevant departments to remove restrictive measures in the automotive aftermarket, further unleashing its consumption potential,” Sheng was quoted by the publication as saying.
Sheng highlighted that these reform measures align with a March proposal designed to invigorate consumption and propel economic growth.
The proposal advocated for increased spending on automobile-related activities such as car modifications, leasing, and motor sports.
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By GlobalDataIt also focuses on bolstering the used car market by simplifying registration processes and enhancing data sharing mechanisms.
The proposal further recommended transitioning from “purchase-based controls” to “usage-based regulation” in auto consumption policies.
Furthermore, it emphasised the need to guarantee car ownership eligibility for families which have repeatedly failed to obtain a number plate through the lottery system.
In key Chinese metropolitan areas, vehicle purchases have been traditionally limited through licence lotteries or auctions to alleviate traffic congestion and pollution.
However, the central government is now encouraging local authorities to loosen these restrictions and adjust vehicle quota systems to better serve households without cars, as part of a wider push to boost domestic demand.
According to the data from the China Automobile Dealers Association, sales of used cars in the country reached 13 million units in the first eight months of the year, a figure that closely trails the 14.7 million new vehicles sold within the same timeframe.
According to an annual report by the China Association of Automobile Manufacturers (CAAM) released in December, the increasing number of vehicles and their ageing average age suggest significant growth opportunities for the aftermarket, especially in repair and maintenance services.
More recently, the CAAM reported that sales of Chinese-made vehicles, including exports, saw a year-on-year increase of over 16% to 2.857 million units in August 2025, following a 5% decline to 2.453 million units the previous year.
Domestic sales experienced a 15% rise to 2.246 million units, while exports surged by 20% to 611,000 units.
