China’s Ministry of Industry and Information Technology is planning to ban the resale of vehicles within six months of their initial registration, as part of a broader effort to address the growing issue of so-called “zero-mileage” used cars, an industry publication reported on Saturday.
The practice, which has become widespread amid fierce competition in the country’s automotive sector, involves registering and insuring new vehicles before they are sold to customers. This allows automakers and dealerships to meet sales targets, despite the vehicles remaining unsold in practice. The method has drawn scrutiny for distorting sales figures and creating confusion for consumers.
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The information was disclosed in an editorial published by Auto Review, a publication affiliated with the China Association of Automobile Manufacturers (CAAM). The editorial noted that the China Automobile Dealers Association (CADA) had separately proposed implementing a vehicle coding system to regulate used car exports.
Several major automakers are also reportedly taking steps to address the issue. Companies including BYD and Chery are said to be introducing measures to hold dealerships accountable for prematurely registering vehicles, which violates sales and licensing norms.
The resale ban, if adopted, would be the first regulatory action by Chinese authorities aimed directly at halting the zero-mileage practice. The issue has gained momentum since being raised by a major auto industry executive earlier this year, prompting increased attention from government bodies and state-run media.
In recent weeks, additional signals have emerged suggesting stronger regulatory intervention is forthcoming. These include public criticism of the practice by official media outlets and a recent pledge by China’s State Council to manage what it described as irrational competition within the domestic automotive market.
The proposed policy could significantly reshape sales reporting practices and dealership operations, especially as the country continues its transition toward stricter industry oversight and long-term sustainability in the automotive sector.