The Inflated EV Game: Neta and Zeekr's Sales Strategies in China
Chinese EV brands Neta and Zeekr reportedly inflated sales figures by pre-registering cars with insurance before actual sale to consumers, a method that allowed them to meet aggressive sales targets. This practice, called 'zero-mileage used cars,' is under scrutiny from Chinese authorities and media.
Chinese electric vehicle manufacturers Neta and Zeekr have reportedly inflated their sales numbers by pre-registering cars with insurance policies before their actual sale to consumers. This tactic allowed the companies to meet aggressive sales targets, according to interviews and documents reviewed by Reuters.
The practice, known in the industry as 'zero-mileage used cars,' involves booking sales of vehicles that have been registered but not yet delivered to buyers. This approach has emerged due to fierce competition in China's auto market, which is facing a chronic overcapacity issue resulting in a long-standing price war.
This sales strategy is now under scrutiny, with Chinese state media and government bodies expressing concerns and pledging regulatory measures. The China Securities Journal highlighted anomalies in sales reports for Neta and Zeekr, sparking further investigation and pushback from both the media and consumers.
(With inputs from agencies.)
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