Chinese electric vehicle brands Zeekr and Neta have reportedly inflated their sales figures by selling “zero-mileage used cars” as new vehicles to meet aggressive sales targets.
Why it matters: This practice creates a misleading image of the companies’ sales performance and revenue, highlighting the intense competition in China’s automotive market.
The details:
- Between January 2023 and March 2024, Neta pre-booked sales of at least 64,719 vehicles using this method, accounting for more than half of the 117,000 vehicles it reported selling during that period.
- Zeekr used the same tactic, particularly through its main dealer, Xiamen C&D Automobile, in late 2024.
- Consumers in Guizhou, Chongqing, and Guangzhou raised complaints after discovering the vehicles they had purchased were already insured “used cars.”
- Insurance registration data revealed a significant shift in Neta’s customer demographics, with corporate customers making up 63 percent of Neta’s sales in 2023, up from just 8 percent in 2022.
Li Yanwei, an expert committee member of the China Automobile Dealers Association, noted that insurance registration data is considered a “barometer” of an automaker’s sales performance and is closely monitored by industry stakeholders, media, and capital markets.
What they’re saying:
- “This practice underlines the intense competition in China’s automotive market, where some automakers have resorted to using ‘zero-mileage used cars’ to create a misleading image of their sales and revenue,” according to a senior sales manager from an unnamed automaker.
- Zeekr stated that the “0-kilometer used cars” report is false and that the company opposes actions that disrupt industry order, claiming that the vehicles mentioned in the report were actually display cars, which are legally new and have never been registered or invoiced as retail sales.
The other side: Zeekr claims that the vehicles in question were display cars, insured for safety during exhibitions but remaining unregistered new vehicles.
What’s next: The controversy has raised questions about sales practices within the Chinese automotive industry, particularly among emerging electric vehicle manufacturers, and may lead to increased scrutiny from regulators and consumers.