China has revealed a sweeping package of measures to relax longstanding restrictions on car modifications, motorsports and classic-car collections, as authorities seek to unlock growth in the country's trillion-yuan automotive aftermarket amid slowing new car sales.
The policy, jointly issued by the Ministry of Commerce and eight other central government departments, introduces 17 specific measures across six areas including vehicle modification, recreational vehicle camping and car rental. It aims to break down institutional bottlenecks weighing on the country's massive vehicle aftermarket and cultivate fresh consumption scenarios amid strong demand for customized automobiles.
According to data from the MoC, as of June, the number of automobiles in China reached 370 million, with passenger vehicles over 7 years old accounting for more than half. This underpins a shift from basic mobility to personalized, experience-driven consumption, opening a potential multi-trillion-yuan aftermarket opportunity.
Currently, the domestic vehicle modification market stands at around 160 billion yuan ($22.1 billion). It grew 23.5 percent year-on-year in the first quarter of this year, outpacing the growth in vehicle sales by a wide margin, according to industry data.
Wang Du, vice-president of the China Automobile Dealers Association, predicted that the new rules would trigger a surge in modification demand. "The market could reach around 300 billion yuan within one to two years, and in the long term it is likely to hit 1 trillion yuan," he said.
Despite robust growth, China's vehicle modification sector lags behind mature markets, with the US market valued at approximately $53 billion in 2024, Japan at $24 billion and China at $9.5 billion, according to consulting firm MCR.
Many Chinese car enthusiasts have long been deterred by vague regulations and the high cost of reverting modifications for annual inspections.
The new policy tackles these hurdles by introducing a tiered and category-based management system, establishing a unified national list of approved modification items, and streamlining vehicle inspection and registration-change procedures. The overhaul brings the long-unregulated segment under formal standardized oversight.
For example, the first category covers minor exterior and interior modifications, such as body color changes, replacing wheels with ones of the same size, and adding roof racks. These modifications can be conveniently registered online and do not require removal or restoration during annual inspections.
Notably, off-road modifications — including raised suspensions, off-road bumpers and snorkels — have been legalized, providing compliant upgrade options for off-road enthusiasts.
Off-road bases and modification shops in Beijing have seen a surge in visitor numbers recently, with lightweight personalization projects such as color changes, wheel replacements and suspension upgrades emerging as top choices.
In Foshan, Guangdong province — a manufacturing hub for modification parts — auto lighting companies anticipate a fourfold year-on-year increase in orders for the second half of 2026, driven by demand for modified headlamps for popular models.
Separately, 40 pilot cities are pursuing differentiated approaches to auto consumption reform.
Beijing's Chaoyang district is focusing on standardizing modification services; Tianjin is developing modification industries, classic-car circulation and amateur racing; while Hainan province is integrating car rental, travel modifications and classic car exhibitions to create a model for automotive cultural tourism.
Regulators have paired the liberalization with a robust supporting framework to promote sustainable industry growth. National uniform standards will be drafted for aftermarket components, requiring all compliant modification parts to obtain mandatory China Compulsory Certification, or CCC.
Annual inspection protocols have also been revised: registered, legal modifications no longer force owners to strip out custom parts, resolving a top consumer grievance and establishing a stable regulatory foundation for the sector's long-term health.