Chinese electric vehicle maker Zeekr on July 20 denied allegations of exaggerating sales numbers by insuring cars before selling them to customers, saying the insured vehicles mentioned in a Chinese state-media report were for showroom display and still legally new for sale. The Geely-affiliated EV brand made the statement after the China Securities Journal (CSJ) reported that the company was engaged in the practice of selling vehicles that had been previously registered as “used” despite having no mileage, which allowed it to artificially boost its sales numbers. The CSJ is one of the eight newspapers and magazines authorized by the China Securities Regulatory Commission for disclosing information about mainland-listed companies. Reuters reported that Neta is also among the many Chinese companies alleged to have inflated its sales numbers in this manner since late 2022. Chinese regulators are planning to crack down on the practice by banning cars from being resold within six months of being registered as a sale, according to the China Association of Auto Manufacturers. [Reuters, China Securities Journal, in Chinese]
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