by Chinese Automakers Manipulate Sales
According to reports, Chinese automakers are artificially inflating sales figures by registering new cars as used before export. The majority of such “used” cars exported in 2024 had zero mileage. This scheme allows them to circumvent trade restrictions and quickly fulfill economic plans.
Local authorities support this practice as it contributes to GDP growth. However, the leadership of the Communist Party of China condemns such actions. As noted by consultant Tu Le:
“This is a consequence of an almost four-year price war that forces companies to register any sales.”
Conflict Within the Industry
Exporters buy new cars, register them in China, and then immediately resell them as used. Manufacturers get sales, and local budgets get taxes. However, some industry leaders, such as Wei Jianjun, have warned of the risk of a crisis due to such a scheme.
As of 2024, 90% of the 436 thousand exported “used” cars had no mileage. Cities are even creating special warehouses for such cars. However, after public criticism, the People’s Daily newspaper condemned this practice, which may indicate a change in the official position.
This situation raises questions about the reliability of the official sales statistics of Chinese automakers. Without closing the legal loophole, it is impossible to accurately assess the real volumes of production and export of cars from China. Local governments continue to support the scheme for now, but pressure from the central government may force them to reconsider their approach.
