Chinese electric vehicle manufacturer Zeekr has launched an internal investigation following reports that it had recorded vehicle sales using insured but unsold units, a practice known in the industry as selling “zero-mileage” used cars.
In a statement issued on Sunday, Zeekr said the vehicles referenced in recent media reports were used for exhibitions and had been insured but were neither sold nor officially registered. The company said it has formed a dedicated team to examine the situation and improve internal processes, reiterating its opposition to the sale of zero-mileage used cars.
The response follows reports from Reuters and the China Securities Journal that alleged Zeekr and its dealers had registered vehicles for insurance coverage prior to their actual sale. This allowed the company to record sales ahead of delivery in order to meet monthly or quarterly performance targets.
According to the reports, Zeekr employed the method in late 2024 in the southern city of Xiamen, working with its main local dealer, state-owned Xiamen C&D Automobile. Sales documentation reviewed by Reuters and interviews with buyers and dealers indicated that the insured cars had not yet been delivered to customers.
The practice, while not illegal, has raised concerns about transparency in China’s automotive industry, particularly in light of ongoing price competition and excess production capacity. In response to the growing prevalence of zero-mileage vehicles, China’s Ministry of Industry and Information Technology is reportedly considering a new rule to prohibit the resale of vehicles within six months of their initial registration. The move aims to curb practices that distort sales data and could mislead consumers.
Source: Reuters