Surging car sales from China’s automakers might not be quite as clear-cut as they seem. Behind the headline-grabbing numbers lies a practice that’s prompting questions: some companies appear to be boosting reported sales by insuring vehicles before they’re actually sold.

 

A new report from Reuters sheds light on this strategy, claiming that several of China’s top car manufacturers have been counting cars as “sold” once they’re insured, even if those vehicles haven’t yet reached buyers. Thanks to this approach, sales figures appear stronger than they truly are, giving the impression that targets are being met.