China is set to prohibit the resale of new cars within six months of registration, aiming to end the practice of inflating sales through so-called 'zero-mileage' used vehicles and restore transparency in the competitive auto market.
The move is intended to curb the widespread industry practice of reporting 'zero-mileage' used cars as new sales, a tactic employed to artificially boost performance figures in the country’s competitive automobile market.
'Zero-mileage' vehicles are new cars that are registered and insured before being sold or driven, allowing automakers and dealerships to report them as sales while they remain unsold and unused. The practice is particularly common among electric vehicle (EV) brands in China, which face intense price wars, overcapacity, and government pressure to show strong growth.
The draft rule was first disclosed by Auto Review, a publication backed by the China Association of Automobile Manufacturers, which reported that the Ministry of Industry and Information Technology plans to introduce a ban preventing vehicle resales within six months of initial registration. The proposed measure is part of broader government efforts to ensure fair competition and protect consumers.
The China Automobile Dealers Association has backed the proposal, suggesting additional mechanisms such as export codes for tracking used vehicle flows. Meanwhile, EV manufacturers including BYD and Chery have vowed to penalise dealers that manipulate registrations to inflate sales numbers.
The announcement follows growing concern over distorted market data. A recent Reuters investigation revealed that Hozon Auto’s Neta brand registered more than 64,000 vehicles before they were sold between January 2023 and March 2024, representing over half of the company’s reported sales. Geely’s premium EV brand Zeekr also saw a dramatic rise in registrations in Xiamen at the end of 2024, which aligned with suspected pre-sale registrations.
Although both Neta and Zeekr have denied wrongdoing, their practices are now under heightened scrutiny from media and regulators. State-run outlets such as People’s Daily have criticised the practice, warning it misleads buyers, disrupts the second-hand market, and reduces trust in official figures.
China’s Cabinet earlier this year pledged to curb “irrational competition” in the auto industry. The upcoming ban is expected to be the first direct intervention against zero-mileage sales, with further measures likely, including enhanced lifecycle tracking and used-car export regulations.
AnewZ has premiered The Oligarch’s Design, a long-form investigative documentary marking the launch of AnewZ Investigations, the channel’s new edi...
The foreign ministers of Cambodia and Thailand have told Chinese Foreign Minister Wang Yi that they are willing to pursue a ceasefire, as tensions fla...
The Conservative Party says it would cut funding for green energy projects and redirect the money into defence, arguing the UK needs to be ready for w...
Kazakh President Kassym-Jomart Tokayev’s first official visit to Japan marks a notable moment in relations between the two countries, reflecting a s...
An international scientific-practical congress marking the 90th anniversary of the Azerbaijan State Advanced Training Institute for Doctors named afte...
The foreign ministers of Cambodia and Thailand have told Chinese Foreign Minister Wang Yi that they are willing to pursue a ceasefire, as tensions flared along parts of the two countries’ shared border.
Kazakh President Kassym-Jomart Tokayev’s first official visit to Japan marks a notable moment in relations between the two countries, reflecting a shared interest in deepening cooperation.
The United States has suspended the Diversity Visa Lottery programme, commonly known as the Green Card lottery, after a deadly shooting at Brown University.
The European Union is facing mounting political pressure over its ability to keep Russian sovereign assets frozen, as internal divisions, leadership changes and war fatigue reshape decision-making across the bloc.
Ukraine has welcomed the European Union’s decision to provide €90 billion in support over the next two years, calling it a vital lifeline even as the bloc failed to reach agreement on using frozen Russian assets to finance the aid.
European Union foreign policy chief Kaja Kallas has warned that attempts to reach a peace agreement in Ukraine are being undermined by Russia’s continued refusal to engage meaningfully in negotiations.
Petroleum products are being transported by rail from Azerbaijan to Armenia for the first time in decades. The move is hailed as a tangible breakthrough in efforts to normalise relations between the long-time rivals.
U.S. President Donald Trump delivered a wide-ranging address from the White House in which he sought to highlight what he described as his administration’s achievements while laying the groundwork for his plans for the year ahead and beyond, on Wednesday (18 December).
A rare pair of bright-green Nike “Grinch” sneakers worn and signed by the late NBA legend Kobe Bryant have gone on public display in Beverly Hills, ahead of an auction that could set a new record for sports memorabilia.
Warner Bros Discovery’s board rejected Paramount Skydance’s $108.4 billion hostile bid on Wednesday (17 December), citing insufficient financing guarantees.
Ford Motor Company said on Monday it will take a $19.5 billion writedown and scrap several electric vehicle (EV) models, marking a major retreat from its battery-powered ambitions amid declining EV demand and changes under the Trump administration.
Iran has rolled out changes to how fuel is priced at the pump. The move is aimed at managing demand without triggering public anger.
U.S. stock markets closed lower at the end of the week, as investors continued to rotate out of technology shares, putting pressure on major indices.
The U.S. Federal Reserve’s Federal Open Market Committee (FOMC) cut its benchmark interest rate by 25 basis points to a range of 3.50% to 3.75% following its two-day policy meeting, according to an official statement issued on Wednesday, 10 December.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment