China Regulator Calls Automakers to Address 'Zero-Mileage' Used Car Sales
SHANGHAI () – China’s Ministry of Commerce plans to hold discussions with various industry associations and automobile manufacturers such as BYD and Dongfeng Motor to explore strategies for boosting the sale of “new used vehicles,” which have not been driven, according to an individual privy to the information who spoke anonymously due to confidentiality reasons. The talks are scheduled for Tuesday afternoon, the source mentioned, requesting anonymity because specifics about the gathering were sensitive.
This follows remarks made by Great Wall Motor’s Chairman Wei Jianjun during an interview with Sina Finance last week, where he mentioned that the automotive sector's prolonged pricing battle has led to a new trend known as "zero-mileage used vehicles" appearing in the Chinese marketplace.
He explained that the issue revolved around vehicles which had been officially registered and issued license plates—indicating they were marked as sold—but had never actually been driven. According to Wei, this was happening with approximately 3,000 to 4,000 sellers on various Chinese used-car websites.
The source indicated that this strategy was viewed as a possible approach in the sector for manufacturers and sellers of automobiles to boost new vehicle sales as they aim to achieve ambitious sales goals.
According to an individual, other invitees at the gathering encompassed the China Association of Automobile Manufacturers (CAAM) and the China Automobile Dealers Association (CADA). Additionally, several pre-owned car trading platforms were also included. It was noted that the Ministry of Commerce, BYD, Dongfeng Motor, and CADA promptly didn’t reply when asked for their input. Both the Great Wall company and CAAM chose not to provide comments either.
Shares of Chinese automakers like BYD and Leapmotor continued to lose value following the reports, each dropping by 3.1%. The Hong Kong Hang Seng Automotive Index also declined over 2%.
(Reported by the news teams in Shanghai and Beijing; Edited by Clarence Fernandez and Kate Mayberry)
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