Investing.com -- China’s automotive industry has been artificially boosting sales figures through a government-supported grey market that registers new vehicles as "used" for export purposes, according to a Reuters investigation published on Tuesday.
These "zero-mileage" cars, which have never been driven, are reportedly being shipped to markets including Russia, Central Asia and the Middle East as used vehicles, allowing Chinese automakers to report growth while disposing of excess inventory that would be difficult to sell domestically.
The practice gained national attention after the head of Chinese automaker Great Wall Motor criticized the sale of zero-mileage used cars within China in May. On June 10, the People’s Daily newspaper condemned the domestic sale of these vehicles, calling for "tough regulatory action" to restore market order amid an ongoing price war.
While domestic sales of such vehicles face criticism, the export of zero-mileage used cars is actively encouraged by regional governments across China. Reuters claims it identified 20 local governments, including major export hubs like Guangdong and Sichuan, that have publicly documented their support for this practice.
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