Inflated Sales Tactics Exposed: The Zero-Mileage Used Car Scandal

Chinese electric vehicle manufacturers Neta and Zeekr have been inflating their sales figures by insuring cars before they are actually sold, as revealed by documents and interviews conducted by Reuters.

The tactic allowed the companies to prematurely register sales, a move deemed as 'zero-mileage used cars,' drawing criticism in China's hyper-competitive auto market.

This practice is under increasing scrutiny from state media and government officials, who are considering regulations to curb what they term 'irrational' competition. The scandal highlights broader industry challenges exacerbated by a prolonged price war and overcapacity.

(With inputs from agencies.)