Chinese EV Brands Neta and Zeekr Inflating Sales to Meet Targets
Chinese electric vehicle brands Neta and Zeekr are accused of inflating sales to meet targets by registering cars as sold before actual sales were finalized. Documents and interviews reveal Neta pre-booked sales of 64,719 cars, more than half of its reported sales for a given period.
Chinese electric vehicle manufacturers Neta and Zeekr are under scrutiny for inflating sales figures, a practice that involves registering unsold cars as sold through pre-arranged insurance purchases. Documents reveal that Neta booked early sales of over 64,000 cars, a significant portion of their reported sales, to meet aggressive targets.
The manipulation of sales figures, termed 'zero-mileage used cars,' stems from fierce competition in China's auto market. This tactic allowed automakers to report inflated numbers, drawing criticism from the government and industry stakeholders, who are now calling for more ethical practices and regulatory oversight.
The China Association of Auto Manufacturers, among others, is moving towards stronger regulations to curb the misleading practice. Despite denials from the involved companies, state media is highlighting these cases, reflecting growing pressures on Chinese auto companies to reform sales tactics and restore consumer trust.
(With inputs from agencies.)
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