China's Used Car Exports to Surpass 500,000 Units in 2026, Middle East Accounts for Over 25% as Second-Largest Destination

SHANGHAI, June 25, 2026 — According to the latest data released by the China Automobile Dealers Association (CADA), China's used car exports are projected to exceed 500,000 units in 2026, representing a year-on-year growth of over 35%. The Middle East region, with a market share of more than 25%, has officially become China's second-largest destination for used car exports, trailing only Southeast Asia.

Industry Boom: From "Local Consumption" to "Global Circulation"

Amidst the steady growth of China's vehicle parc and accelerating replacement cycles, Chinese used cars are rapidly transitioning from "local consumption" to a new phase of "global circulation." In the first half of 2026 alone, used car exports through Shanghai ports increased by 28% year-on-year, with exports to the Middle East and Southeast Asia accounting for over 45% of the total.

Industry experts note that the competitive focus of China's used car exports is gradually shifting from early-stage vehicle sourcing competition to service capability and collaboration capability competition. "In the past, competition was about who could secure cheaper car sources. Now it's about who can provide complete export solutions, including certification, logistics, after-sales services, and the entire value chain," said a CADA official at the 2026 Used Car Export Forum.

Middle East Market: Surging Demand with Distinct Cost Advantages

As a strategically emerging market for Chinese used car exports, the Middle East has experienced explosive growth in recent years. Data shows that in the first half of 2025, used car imports to Iraq increased by 80% year-on-year, while the UAE saw a remarkable 150% growth.

Multiple factors driving Middle East market demand:

Significant cost advantages: Benefiting from the zero-tariff policy under the China-UAE Free Trade Agreement, Chinese used cars are 15-20% cheaper than Japanese brands, offering outstanding value for money

New energy dividends: Countries such as the UAE and Saudi Arabia are accelerating their energy transition, leading to surging demand for new energy used vehicles

Japanese supply contraction: Affected by global supply chains, Japanese brand supply in the Middle East market has declined, creating market space for Chinese brands

High oil price environment: Amidst persistently high oil prices, Chinese hybrid and electric vehicles offer superior cost-of-ownership advantages

Notably, China has surpassed Japan and South Korea to become Saudi Arabia's largest automobile importer. According to the 2026 Economic Report, Chinese automobile brands are expected to sell over 120,000 units annually in the Saudi market, with market share growing at a rate of 10-15% per year.

Opportunities and Challenges: Compliance as Key Entry Barrier

Despite the promising market outlook, compliance requirements in the Middle East market continue to tighten. Starting from 2026, the Saudi Standards, Metrology and Quality Organization (SASO) has once again tightened its policies:

Mandatory requirement that imported used vehicles be no more than 5 years old

Strict prohibition of accident vehicles, flood-damaged vehicles, modified vehicles, and commercial vehicles

Vehicle energy efficiency reports and complete condition inspection reports required

Vehicles without Saber system compliance certificates face direct rejection and return risks

According to 2025 Saudi Customs data, 18% of used vehicles were returned due to missing or non-compliant certificates, with an average loss exceeding RMB 20,000 per vehicle. Compliance capability has become a core competitiveness for enterprises entering the Middle East market.

willstar Automotive: Deepening Middle East Presence with Localized Services

As an automotive export enterprise focused on the Middle East market, willstar Automotive Export Co., Ltd. continues to expand its Middle East market share through advantages in compliance certification, vehicle preparation standards, and localized services.

"The Middle East market is not simply about selling cars—it's about building a complete service system," said a company spokesperson. "With our professional preparation base in Shanghai Port Free Trade Zone, every export vehicle undergoes inspection and preparation strictly in accordance with Middle Eastern country standards, ensuring 100% compliance clearance."

Addressing the pain point of overseas after-sales services, willstar is actively building a localized service network in the Middle East, with plans to establish comprehensive service stations in Dubai, UAE, providing one-stop maintenance, parts, and warranty services for local customers—ensuring customers overseas have "guaranteed purchases and accessible repairs."

Future Outlook: A New Phase of Systematic Development

Industry analysts believe that as China's used car exports enter a new phase of systematic development, leading enterprises will further expand their market share through service networks, compliance capabilities, and supply chain advantages. The Middle East, as a high-margin strategic market, will see its value become even more prominent.

"Short-term geopolitical fluctuations will not change the overall growth trend of China's automobile exports," said an industry analyst. "There is still enormous room for growth in the penetration rate of Chinese used cars in the Middle East market, with the region's share expected to exceed 30% in the next three years."

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