Reports have alleged that China’s Ministry of Commerce has been looking into automakers over concerns that they may have misrepresented new vehicle sales. Apparently, there have been a sizable number of “zero-mile vehicles” appearing on used lots, suggesting companies may have been handing brand-new vehicles to dealers at a large discount to help pad monthly sales figures.
On the surface, this seems like business as usual. Similar to Western markets, China has seen reduced demand for new vehicles and is simply offering discounts to help drive volume. However, according to Bloomberg, the cars were being counted as previously sold to allow the relevant companies to meet preexisting new-vehicle sales targets. This likewise helped appease investors who were starting to shun the industry.
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