A leading publication affiliated with China’s top auto industry association has retracted a report that inaccurately stated the Ministry of Industry and Information Technology (MIIT) planned to ban the resale of new cars within six months of registration. The correction comes amid broader efforts to address issues linked to so-called zero-mileage used cars in the Chinese automotive market.
Auto Review, an official outlet run by the China Association of Automobile Manufacturers (CAAM), acknowledged that its original story published on Saturday contained misrepresentations involving the MIIT and other authorities. The publication said it had since removed and corrected the relevant parts of the article.
See also: Zeekr Denies Selling Zero-Mileage Used Cars, Starts Internal Review
The updated version of the story now states that MIIT intends to regulate zero-mileage used cars in collaboration with relevant departments, focusing on managing the issue at its source rather than imposing a direct ban on quick resales.
Auto Review had previously reported that the MIIT aimed to curb the resale of vehicles within six months of their initial registration as a strategy to tackle the zero-mileage practice. The revised article also clarified an earlier statement regarding the China Automobile Dealers Association, correcting its proposal from a code system for used car exports to a broader mechanism without further detail.
See also: China Lowers Luxury Car Tax Threshold to RMB 900,000, Expands Scope to Include EVs
One part of the article remained unchanged, stating that companies such as Chery and BYD are expected to hold dealers accountable for regulatory violations, including prematurely licensing unsold vehicles.
The emergence of zero-mileage used cars in China has drawn increasing attention as automakers and dealerships seek to meet aggressive sales targets in a highly competitive environment marked by prolonged price wars and overcapacity. The practice typically involves registering and insuring unsold new vehicles, which are then classified as used despite having no mileage.
See also: Chinese EV Brands Reportedly Used Pre-Insurance Tactics to Boost Sales Figures
Recent actions by government bodies and state media suggest mounting regulatory scrutiny, with calls to rein in irrational competition in the country’s electric vehicle sector and tighten oversight of sales practices.
