- Official Action Targets Unconventional Practices in China’s Car Market
- A Covert Strategy to Undercut Prices Without Damaging Brand Value
- Regulatory Efforts to Reshape China's Used Car Market
As competition intensifies among automakers in the Chinese market, an unusual phenomenon has emerged, raising red flags among regulatory authorities. The issue centers around vehicles that are officially registered but have never been driven since production. These so called zero kilometer used cars have prompted China’s Ministry of Commerce to organize an urgent meeting with major automakers and industry bodies to discuss the growing impact of this trend on the local automotive market.
Official Action Targets Unconventional Practices in China’s Car Market
Reuters has reported that China’s Ministry of Commerce is preparing to hold a high level meeting with leading automakers and industry bodies to address the growing issue of registered vehicles being sold without ever having been driven. Among the key participants invited to the meeting are major players such as BYD and Dongfeng Motor, alongside prominent organizations like the China Association of Automobile Manufacturers and the China Automobile Dealers Association, as well as several used car trading platforms.
According to informed sources, the meeting is scheduled for Tuesday afternoon and will focus on the widespread emergence of this trend, which has sparked recurring debates across Chinese social media in recent months. Authorities are growing increasingly concerned about its potential impact on the integrity and stability of the domestic car market.
A Covert Strategy to Undercut Prices Without Damaging Brand Value
In a striking statement, Wei Jianjun, Chairman of Great Wall Motor, noted that the rise of so called zero kilometer used cars is a direct result of intense price competition that has plagued the Chinese automotive market for years. He explained that thousands of vehicles are now listed on online platforms as used cars, even though they have never been driven since being registered and issued license plates.
Jianjun highlighted that this method serves as a backdoor pricing strategy, allowing automakers to offer hidden discounts without formally lowering the retail price or damaging their brand perception. While this approach helps companies hit aggressive sales targets, it also raises serious concerns about market transparency and consumer rights in the absence of clear regulatory oversight for such sales practices.
Regulatory Efforts to Reshape China's Used Car Market
According to Chinese media platform Cailian, regulators have issued formal invitations to several automakers and suppliers to attend a large scale seminar aimed at refining the distribution mechanisms of used cars. The seminar focused on challenges surrounding so called zero kilometer vehicles, while exploring ways to promote the circulation of such cars in a manner that protects consumers and supports organized market growth.
This initiative comes at a critical time, as the used car market is viewed as a vital pillar for sustaining China’s automotive industry. Through such actions, the government seeks to regulate commercial activity and minimize market disruptions caused by unmonitored practices, which may lead to imbalances in supply and demand and distort fair competition.
As the world’s largest car market, China plays a central role in shaping global automotive trade policies. Any regulatory measures implemented domestically could have ripple effects across other regions, especially as Chinese brands like BYD continue to expand aggressively in the Middle East and Europe, solidifying their international presence with strategic precision and growing consumer confidence.
