Some Chinese Automakers May Have Been Lying About Their Sales Numbers

Kevin Frayer/Getty Images

Chinese conveyance sales person seemingly exploded crossed nan world (save for nan U.S.), but it looks for illustration astatine slightest immoderate of that mightiness beryllium fume and mirrors. A caller study from Reuters says that Chinese automakers Neta and Zeekr inflated sales numbers successful caller years arsenic a measurement to deed fierce targets.

The companies would put to person immoderate cars insured earlier they were really sold to buyers, according to documents reviewed by nan outlet. It would alteration them — nether Chinese manufacture car registration practices — to book income early truthful they could deed monthly and quarterly targets. Folks, this is immoderate shady worldly correct here.

Neta carried retired this strategy pinch astatine slightest 64,719 vehicles betwixt January of 2023 and March of 2024. That accounts for complete half of nan 117,000 vehicles it supposedly sold complete those 15 months, Reuters reports. It's imaginable nan believe could person started each nan measurement backmost successful 2022. To get EV subsidies. Geely's Zeekr utilized a akin method to book early income successful precocious 2024 successful nan Chinese metropolis of Xiamen done its main trader location — a state-owned shop called Xiamen C&D Automobile. These cars that are booked arsenic sold earlier they get to nan purchaser are known arsenic "zero-mileage utilized vehicles" successful nan Chinese car industry. It's beautiful easy to spot why a strategy for illustration this would emerge: utmost title for income successful nan world's largest car market.

In an effort to trim down connected this practice, nan Chinese Ministry of Industry and Information Technology (MIIT) could prohibition cars from being resold wrong six months of being registered arsenic a sale, according to Auto Review, a publication tally by nan China Association of Auto Manufacturers.

hendra yuwana/Shutterstock

Recently, Chinese authorities media reported that Zeekr had been trading cars that were already insured to inflate sales. State media interviewed car buyers successful cities for illustration Guangzhou and Chongqing who apparently recovered retired their seemingly caller cars had already been insured earlier they took delivery. They said they were refused refunds contempt nan truth that they felt they had been deceived.

Three Neta buyers who said pinch Reuters said nan dealers had not told them astir nan policies, and they didn't find retired astir them until they expired.

The newspaper, nan China Securities Journal, began questioning Zeekr's weirdly precocious income successful nan cities of Shenzhen and Xiamen backmost successful December, according to Reuters. It's reported income based disconnected security records successful 1 of nan cities deed 2,737 vehicles that period — 14 times its accustomed monthly average. It noticed akin abnormalities for Neta successful different cities.

Here's really nan companies person responded truthful far, according to Reuters:

Zhejiang Hozon New Energy Automobile, which owns Neta, and Xiamen C&D did not respond to requests for remark connected Saturday. A spokesperson for Geely said, "Geely firmly rejects nan study put guardant by nan China Securities Journal." The spokesperson declined to remark connected Reuters findings aliases supply further details.

Zeekr said connected Sunday connected its relationship connected Chinese societal media level Weibo that nan vehicles mentioned successful nan media reports were for showroom display. It confirmed that nan cars had been insured pinch mandatory postulation insurance, saying that it was for ensuring information while being exhibited, and that they were still legally caller erstwhile sold to buyers.

It did not straight reply Reuters' questions connected whether it had counted them arsenic unit sales. However, its Weibo connection said it had besides group up a typical squad to analyse nan income issues raised successful nan media reports, without going into further details.

It's benignant of a chaotic thought, but I'm getting nan emotion that China mightiness person too many car companies astatine this point. This title is intelligibly forcing a fewer of them to do immoderate earnestly shady practices. I'm not judge really you hole thing for illustration this different than by thinning nan herd a bit. While China is nan world's largest automarket, it's becoming abundantly clear that it cannot support this myriad of companies.