In China’s rapidly growing electric vehicle (EV) market, fierce competition has driven some companies to adopt opaque and sophisticated tactics to report inflated sales figures, gaining market confidence and investor approval — sometimes at the expense of credibility. Recent reports have exposed that Chinese EV brands Zeekr and Neta inflated their sales numbers by selling so-called “zero-mileage used cars.”
What Are “Zero-Mileage Used Cars”?
The term refers to vehicles officially registered as sold before reaching the end customer, often still held as inventory or owned by dealers, but insured in a way that allows companies to log the sale early, despite the cars not yet being delivered to buyers.
This practice creates a misleading impression of success and growth, as sales data appears strong and demand high, while many vehicles remain stationary in dealership lots.
How Were These Methods Used to Inflate Sales?
According to a Reuters report, under pressure from market competition, both Zeekr and Neta engaged in this practice between January 2023 and March 2024. Neta registered over 64,000 sales this way, making up more than half of its declared sales of 117,000 cars during that period.
Zeekr used similar tactics by recording sales of insured stock vehicles classified as new cars in Xiamen through its state-owned primary dealer.
These methods allowed the brands to report seemingly robust sales that met monthly and quarterly targets under strong investor scrutiny.
Impact on Consumers and the Market
The damage extended beyond distorted sales figures. Some customers later discovered that their “new” cars had actually been used vehicles previously registered, despite marketing claims and limited-time promotional offers.
This practice was noted in several provinces — including Guizhou, Jiangxi, Chongqing, and Guangzhou — tarnishing the reputations of both brands and prompting skepticism regarding the transparency and reliability of their promotions.
Rising Institutional Buyers
Vehicle insurance registration data also raised concerns, showing a sharp rise in institutional clients from 2022 to 2023. Many of Neta’s so-called sales were to companies or agencies inflating numbers artificially, rather than to individual customers.
In 17 of the top 20 cities for Neta’s sales, corporate buyers accounted for over 40% of purchases; in 11 cities, the figure exceeded 90%.
Industry Reactions and Implications
Industry observers and media in China consider vehicle insurance registration data a key indicator of manufacturers’ true market performance. Inflated data mislead local governments, investors, and car buyers alike.
Sales executives at some manufacturers admitted this tactic has become common under intense market pressure, aiming to deceive financial markets and paint a false picture of rising demand and growth.
Future Perspectives
The Zeekr and Neta case highlights serious challenges facing China’s EV industry, stressing the need for transparency and integrity amid fierce competition and rising investor and consumer expectations.
This scandal underlines the urgent necessity to strengthen oversight and auditing systems and improve sales reporting standards to ensure precise data balancing business ambitions with professional honesty.
As electric vehicles become central to the future of mobility, credible sales figures will remain crucial to building consumer trust and solidifying companies’ long-term reputations.
Thus, this case exposes a darker side of modern Chinese automaking, calling for openness, accountability, and more rigorous reviews to protect both consumers and investors, while fostering a fair and sustainable competitive environment.
