Fake It: Neta, Zeekr Caught Using “Zero-Mileage Used Cars”

Two Chinese EV makers, Neta and Zeekr, are under scrutiny for inflating sales figures by insuring unsold vehicles, allowing them to count the cars as delivered under China’s reporting rules, according to Reuters and industry sources.

Neta reportedly used this tactic for over 64,000 vehicles between Jan 2023 and March 2024 which accounted for more than half of its total reported sales. Zeekr, owned by Geely, was also accused of similar practices in late 2024 via its main dealer in Xiamen.

Known as “zero-mileage used cars,” these vehicles are insured and registered before being sold to actual customers. The practice, driven by fierce competition and overcapacity in China’s EV market, has triggered concern from regulators. 

Authorities now plan to clamp down, including banning the resale of such vehicles within six months of registration.

Neta allegedly began pre-insuring unsold cars as early as 2022 to qualify for expiring EV subsidies. Many buyers were unaware their vehicle’s insurance had already begun, only discovering it when the policies expired earlier than expected. Dealers meanwhile report that many of these units remain unsold in warehouses.

Zeekr too saw a sales spike in Xiamen in Dec 2024, with booking  of over 2,700 units yet fewer than 300 were registered for plates. Some vehicles were later sold in other cities, with buyers reporting discounted prices and pre-activated insurance.

In a statement on July 19, Zeekr denied any wrongdoing. It said the vehicles mentioned were unregistered showroom display units that had never been invoiced or sold. While covered by traffic insurance during display, the company said the cars remained legally classified as new.

Zeekr said it sells such units at a discount after 3 to 5 months in storage, with full disclosure to buyers, who retain all first-owner benefits and warranties. Zeekr also emphasised that it opposes any behaviour that distorts fair competition.

Source: Reuters & CarNewsChina