Zeekr and Neta Accused of Faking EV Sales with ‘Zero-Mileage Used Cars’

Two of China’s fast-rising electric vehicle manufacturers, Zeekr and Neta, are under scrutiny after reports alleged that they artificially boosted sales figures using a practice known as selling “zero-mileage used cars.” According to reports, both brands prematurely recorded vehicle sales by insuring unsold inventory and passing them off as delivered units.

Pre-booked sales inflated Neta’s reported deliveries

From January 2023 to March 2024, Neta reportedly pre-booked at least 64,719 units, over half of the 117,000 vehicles it claimed to have sold during the period. The tactic involved registering cars under insurance before actual customer delivery, a loophole that let automakers count vehicles as sold to hit internal quotas, according to Reuters.

A notable shift also appeared in Neta’s customer base: corporate buyers accounted for only 8% of insurance registrations in 2022, but that figure jumped to 63% in 2023. In cities like Guangzhou and Chongqing, corporate clients made up over 90% of reported sales, suggesting bulk purchases may have been used to manipulate data further.

Zeekr allegedly used limited-time offers to mask unsold inventory

Zeekr, Geely’s premium EV brand, employed similar tactics in Xiamen, where it reportedly pre-booked sales through its main dealer, state-owned Xiamen C&D Automobile. Consumers in multiple provinces later discovered their vehicles had already been insured prior to delivery, effectively making them “used” despite never being driven. These sales were promoted as part of “limited-time offers,” according to China Securities Journal.

Industry experts warn that these practices distort market perception. Insurance data, which is tracked closely by investors and analysts, acts as a proxy for true sales performance. Thus, “zero-mileage used cars” can mislead capital markets, falsely indicating strong demand when the underlying inventory remains quite stagnant.

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