US EditionChina EV brands Zeekr, Neta inflated car sales using insurance scheme
CHINA, JUL 19 – Neta prematurely recorded over 64,000 vehicle sales using insurance registrations to meet targets, while Zeekr employed similar tactics amid intense market competition in China's EV sector.
- Automakers Neta and Zeekr in China have been accused of artificially boosting their vehicle sales between January 2023 and late 2024 by recording unsold cars as sold through arranged insurance transactions.
- The inflation arose from fierce competition and pressure to meet aggressive sales targets amid declining actual sales and financial trouble at Neta since late 2024.
- Zeekr booked 2,737 sales in Xiamen in December 2024, mostly to companies via insured inventory, while only 271 cars received license plates, indicating mismatched sales and registrations.
- State media condemned the 'zero-mileage used cars' practice as harmful to industry and buyers, and analysts like Li Yanwei believe it aims to embellish financial reports and performance results.
- Government and industry bodies plan stronger regulations to curb misleading practices, with dealer associations urging reasonable targets to restore consumer trust in the Chinese EV market.
24 Articles
24 Articles
Chinese e-car manufacturers Neta and Zeekr have artificially increased their sales figures, and the government is planning to regulate against such practices.
With the help of an insurance trick, e-car manufacturers Neta and Zeekr have hoarded their sales figures. The Chinese government is increasingly trying to restrict such practices.
Chinese EV Brands Neta and Zeekr Inflating Sales to Meet Targets
Chinese electric vehicle brands Neta and Zeekr are accused of inflating sales to meet targets by registering cars as sold before actual sales were finalized. Documents and interviews reveal Neta pre-booked sales of 64,719 cars, more than half of its reported sales for a given period.
Entrepreneurships have registered compulsory insurance, which has allowed to computer numbers before even the interest of buyers
The companies hired insurance before sales, show the documents, which would allow them, in accordance with the registration practices of cars in the Chinese industry, to register sales in advance.
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