
Burning Ship Bound for Mexico Carried Several Chinese Car Brands
The Morning Midas was shipping around 3,000 cars from a range of manufacturers including Chery Automobile Co. and Great Wall Motor Co. to Mexico. It's unclear at this stage which brand's electric vehicle caught fire, the people said, who asked not to be identified discussing preliminary findings.
The eastern Chinese city of Yantai, the port where the ship originated, also has a SAIC Motor Corp.-GM plant that produces the Buick Envision model, while the charterer of the vessel has been reported by local media to be Anji Logistics, a subsidiary of SAIC.
Smoke was first seen coming from a deck of the vessel on Tuesday, whose cargo included about 800 EVs. The crew initiated firefighting procedures but the blaze couldn't be brought under control. Responders were deployed to support salvage and firefighting operations, the ship's manager Zodiac Maritime said in a statement.
The US Coast Guard, which said the fire aboard the ship occurred approximately 300 miles south of Adak Island in Alaska, evacuated all 22 crew members and transferred them to a nearby merchant ship.
Great Wall Motor had about 140 cars on the ship, although none of them were battery EVs and were not located at the deck where the fire started, one of the people said.
A representative from Chery declined to comment. Great Wall Motor didn't immediately respond to a request for comment. Calls and an email to Anji Logistics weren't answered.
--With assistance from Sarah Chen and Katia Dmitrieva.
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Economic Times
15 hours ago
- Economic Times
China EV brands Zeekr, Neta inflated car sales using insurance scheme
Reuters FILE PHOTO: A Zeekr charging station stands at the factory of the electric vehicle (EV) maker in Cixi, Zhejiang province, China March 19, 2025. Chinese electric vehicle brands Neta and Zeekr inflated sales in recent years to hit aggressive targets, with Neta doing so for more than 60,000 cars, according to documents reviewed by Reuters and interviews with dealers and buyers. The companies arranged for cars to be insured before they were sold to buyers, the documents show, enabling them under Chinese industry car registration practices to book sales early so they could hit the monthly and quarterly targets, the dealers and buyers said. Neta booked early sales of at least 64,719 cars through this method from January 2023 to March 2024, according to copies of records it sent to dealers, seen by Reuters. That was more than half the sales of 117,000 vehicles it reported over the 15 months. Zeekr, a premium EV brand owned by Geely, used the same method to book early sales in late 2024 in the southern city of Xiamen through its main dealer there, state-owned Xiamen C&D Automobile, according to dealers, buyers and sales receipts seen by Reuters. Vehicles booked as sold before reaching a buyer are called "zero-mileage used cars" in the Chinese auto industry. The practice has emerged out of cutthroat competition for sales in the world's largest auto market, which is reeling from a brutal, years-long price war caused by chronic overcapacity. The industry faces a moment of reckoning, with state media calling out the zero-mileage car practice, the cabinet pledging to regulate "irrational" competition, and other central government bodies organising meetings with the industry's largest players to express concern about such methods. On Saturday a publication run by the China Association of Auto Manufacturers said the industry ministry was planning to clamp down on the practice by banning cars from being resold within six months of being registered as a sale. Also on Saturday, state media reported that Zeekr had been selling cars with insurance already purchased to inflate sales, the first such naming and shaming of a specific automaker. In a front-page story, the China Securities Journal newspaper interviewed Zeekr car buyers in cities such as Guangzhou and Chongqing, who the newspaper said had found that their cars already had insurance policies before they were sold. They said they were refused refunds, even though they felt they were deceived. The newspaper questioned Zeekr's unusually high sales in the cities of Shenzhen and Xiamen in December. Its reported sales in Xiamen surged to 2,737 that month, more than 14 times its monthly average. Reuters could not determine how much of that volume might have been booked early. The China Securities Journal also raised questions over Neta's sales, saying it showed anomalies. Reuters is reporting for the first time details of how Neta inflated sales. Zeekr, Zhejiang Hozon New Energy Automobile, which owns Neta, and Xiamen C&D did not respond to requests for comment on Saturday. A spokesperson for Geely said, "Geely firmly rejects the report put forward by the China Securities Journal." The spokesperson declined to comment on Reuters findings or provide further details. Li Yanwei, an analyst with the China Automobile Dealers Association, said he believed the firms carried out such practices to embellish their financial reports and achieve their performance goals. "This way of whitewashing performance is not advisable," he wrote on Chinese social media platform Weibo on Saturday. Analysts and investors tracking China's auto industry gauge performance and estimate inventory levels with two sets of sales data. Wholesale numbers reported by automakers to the industry association show sales from automakers to dealers, while retail data compiled from insurance registration records show the sales to users. Some zero-mileage used cars are exported to be sold as second-hand cars overseas, but analysts and dealers say the domestic sales volume is significantly higher, with Chinese customers nationwide buying what they believe to be discounted new vehicles, only to find out later their car is not insured under their name. Last month the state-owned People's Daily, the mouthpiece of China's ruling Communist Party, published an editorial condemning the sale of zero-mileage used cars domestically and listing a litany of harms the practice brings upon the industry and buyers. This month four dealer associations based in the wealthy Yangtze River Delta urged automakers to set them more reasonable sales targets and incentive policies, saying, without providing details, that dealers were being forced to falsify sales. Neta booked sales early by arranging insurance policies for cars before sending them to dealers, according to records shared with Reuters and a dealer for the brand. The records contain details for each car and the insurance policies purchased on them, with the names of the insurance agents. Dealers were able to refer to these when they found a buyer to transfer the policy to, according to copies seen by Reuters. The company booked early sales of 64,719 cars this way. "In Neta's case, the company made it clear to dealers that the cars were insured ahead of time and therefore counted as sold," said the dealer, who spoke on condition of anonymity, citing fears of retaliation from the company. "We had to explain to buyers that the traffic insurance was complementary and remind them it would expire earlier and should be renewed on time," he said. But three Neta buyers, who asked not to be named, told Reuters the dealerships had not told them the policies had begun well before the purchase date, only finding out when the policies expired. The dealer said Neta started doing this in late 2022 to obtain EV subsidies that were set to end that year. Neta's sales peaked in 2022 when it was ranked as the eighth-largest maker of new EVs in China with sales of 152,000 vehicles. Sales fell last year to 87,948 vehicles, including 23,399 exported, and it sold 1,215 cars in the first quarter of 2025, according to data from the China Association of Automobile Manufacturers. The brand has been in financial trouble since late 2024, and its owner, Zhejiang Hozon New Energy Automobile, entered bankruptcy proceedings in China last month, according to state media. The Neta dealer said many of the zero-mileage used cars he received from the company remained in his warehouse, unsold. The company "only had one message: Just do it, everyone else is doing it". Zeekr, which is being privatised by Geely Auto, booked sales with the help of Xiamen C&D, which runs dealerships for Zeekr and other brands. Xiamen C&D insured and registered the vehicles under the names of two subsidiaries in December, allowing Zeekr to count the sales before year-end, according to four dealers and two buyers, as well as a receipt shared with Reuters. Zeekr dealers sold some of the cars in subsequent months to buyers in other cities such as Beijing and Chongqing, the sources said. "The Zeekr salesman said the car would be 3,000 yuan ($420) less than a car I would get from the store and I would also get a charging coupon worth 10,000 yuan," said a buyer in another southern city. He declined to be named, citing concerns of retaliation from the automaker. The China Securities Journal reported that most of the owners it spoke to said their cars were insured by Xiamen C&D and its affiliates. China Automobile Dealers Association data showed that 2,508 of the 2,737 sales Zeekr booked in Xiamen in December were sold to companies, while 257 went to individual buyers. But data published by Xiamen's vehicle administration bureau showed just 271 cars registered in December for license plates, which genuine buyers generally obtain once they receive their cars.
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Business Standard
16 hours ago
- Business Standard
What are zero-mileage used cars & why is China planning to ban their sale?
China's ministry of industry is looking to ban the resale of vehicles within six months of their first registration, in a move to clamp down on the sale of so-called zero-mileage used cars, according to Auto Review, a publication backed by the China Association of Automobile Manufacturers. What are zero-mileage used cars? These vehicles are technically listed as used but have barely or never been driven. They appear as a result of intense competition in the Chinese car market, where manufacturers and dealers insure and register new cars without actual buyers in order to meet sales targets. This practice has grown widespread due to years of aggressive price cuts and oversupply in the world's largest automotive market. However, it often creates complications for customers who later purchase these vehicles. Why is the resale of zero-mileage used cars an issue? Misleading sales figures: Registering unsold cars as 'sold' distorts true market demand. This gives a false impression of a company's performance, affecting industry data and potentially misleading investors. Buyer inconveniences: Customers who purchase zero-mileage used cars might face warranty issues, as coverage usually starts from the date of initial registration. These cars may also have lower resale value and come with insurance or registration documents that are older than expected. Abuse of subsidies and export rules: Some manufacturers have reportedly used such cars to wrongly claim government subsidies for new energy vehicles (NEVs), which are based on sales numbers. Others may label these cars as 'used' to ease export restrictions, as some countries have looser rules for used vehicle imports. Proposed measures and industry pushback The Auto Review editorial stated that the China Automobile Dealers Association has also suggested introducing a coding system to regulate used car exports. Additionally, automakers like Chery and BYD are reportedly planning to penalise dealers who license cars before they are genuinely sold. If implemented, these measures would represent the first government-led effort to address the issue on a national scale. Mounting pressure for action The issue gained public attention in May when Great Wall Motor CEO Wei Jianjun criticised the practice. Since then, signs have emerged that central authorities are preparing a crackdown. Last month, a Communist Party newspaper published a piece criticising the trend, and on Friday (July 18), the Chinese cabinet said it would work to rein in what it called 'irrational' competition in the domestic automotive industry.


Time of India
17 hours ago
- Time of India
China EV brands Zeekr, Neta inflated car sales using insurance scheme
Chinese electric vehicle brands Neta and Zeekr inflated sales in recent years to hit aggressive targets, with Neta doing so for more than 60,000 cars, according to documents reviewed by Reuters and interviews with dealers and buyers. The companies arranged for cars to be insured before they were sold to buyers, the documents show, enabling them under Chinese industry car registration practices to book sales early so they could hit the monthly and quarterly targets, the dealers and buyers said. Explore courses from Top Institutes in Select a Course Category Cybersecurity Degree MBA Artificial Intelligence Digital Marketing Healthcare PGDM others Others Data Analytics Project Management Management Public Policy MCA Data Science Leadership Technology Data Science Product Management Design Thinking healthcare Operations Management Finance CXO Skills you'll gain: Duration: 10 Months MIT xPRO CERT-MIT xPRO PGC in Cybersecurity Starts on undefined Get Details Neta booked early sales of at least 64,719 cars through this method from January 2023 to March 2024, according to copies of records it sent to dealers, seen by Reuters. That was more than half the sales of 117,000 vehicles it reported over the 15 months. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Doctors Beg: Take These 4 Ingredients Before Bed to Burn Fat (Try Now) The Healthy Way Learn More Undo Zeekr, a premium EV brand owned by Geely, used the same method to book early sales in late 2024 in the southern city of Xiamen through its main dealer there, state-owned Xiamen C&D Automobile, according to dealers, buyers and sales receipts seen by Reuters. Vehicles booked as sold before reaching a buyer are called "zero-mileage used cars" in the Chinese auto industry. The practice has emerged out of cutthroat competition for sales in the world's largest auto market, which is reeling from a brutal, years-long price war caused by chronic overcapacity. Live Events The industry faces a moment of reckoning, with state media calling out the zero-mileage car practice, the cabinet pledging to regulate "irrational" competition, and other central government bodies organising meetings with the industry's largest players to express concern about such methods. On Saturday a publication run by the China Association of Auto Manufacturers said the industry ministry was planning to clamp down on the practice by banning cars from being resold within six months of being registered as a sale. STATE MEDIA FOCUS Also on Saturday, state media reported that Zeekr had been selling cars with insurance already purchased to inflate sales, the first such naming and shaming of a specific automaker. In a front-page story, the China Securities Journal newspaper interviewed Zeekr car buyers in cities such as Guangzhou and Chongqing, who the newspaper said had found that their cars already had insurance policies before they were sold. They said they were refused refunds, even though they felt they were deceived. The newspaper questioned Zeekr's unusually high sales in the cities of Shenzhen and Xiamen in December. Its reported sales in Xiamen surged to 2,737 that month, more than 14 times its monthly average. Reuters could not determine how much of that volume might have been booked early. The China Securities Journal also raised questions over Neta's sales, saying it showed anomalies. Reuters is reporting for the first time details of how Neta inflated sales. Zeekr, Zhejiang Hozon New Energy Automobile , which owns Neta, and Xiamen C&D did not respond to requests for comment on Saturday. A spokesperson for Geely said, "Geely firmly rejects the report put forward by the China Securities Journal." The spokesperson declined to comment on Reuters findings or provide further details. Li Yanwei, an analyst with the China Automobile Dealers Association , said he believed the firms carried out such practices to embellish their financial reports and achieve their performance goals. "This way of whitewashing performance is not advisable," he wrote on Chinese social media platform Weibo on Saturday. Analysts and investors tracking China's auto industry gauge performance and estimate inventory levels with two sets of sales data. Wholesale numbers reported by automakers to the industry association show sales from automakers to dealers, while retail data compiled from insurance registration records show the sales to users. Some zero-mileage used cars are exported to be sold as second-hand cars overseas, but analysts and dealers say the domestic sales volume is significantly higher, with Chinese customers nationwide buying what they believe to be discounted new vehicles, only to find out later their car is not insured under their name. PRESSURE ON DEALERS Last month the state-owned People's Daily, the mouthpiece of China's ruling Communist Party , published an editorial condemning the sale of zero-mileage used cars domestically and listing a litany of harms the practice brings upon the industry and buyers. This month four dealer associations based in the wealthy Yangtze River Delta urged automakers to set them more reasonable sales targets and incentive policies, saying, without providing details, that dealers were being forced to falsify sales. Neta booked sales early by arranging insurance policies for cars before sending them to dealers, according to records shared with Reuters and a dealer for the brand. The records contain details for each car and the insurance policies purchased on them, with the names of the insurance agents. Dealers were able to refer to these when they found a buyer to transfer the policy to, according to copies seen by Reuters. The company booked early sales of 64,719 cars this way. "In Neta's case, the company made it clear to dealers that the cars were insured ahead of time and therefore counted as sold," said the dealer, who spoke on condition of anonymity, citing fears of retaliation from the company. "We had to explain to buyers that the traffic insurance was complementary and remind them it would expire earlier and should be renewed on time," he said. But three Neta buyers, who asked not to be named, told Reuters the dealerships had not told them the policies had begun well before the purchase date, only finding out when the policies expired. The dealer said Neta started doing this in late 2022 to obtain EV subsidies that were set to end that year. Neta's sales peaked in 2022 when it was ranked as the eighth-largest maker of new EVs in China with sales of 152,000 vehicles. Sales fell last year to 87,948 vehicles, including 23,399 exported, and it sold 1,215 cars in the first quarter of 2025, according to data from the China Association of Automobile Manufacturers . The brand has been in financial trouble since late 2024, and its owner, Zhejiang Hozon New Energy Automobile, entered bankruptcy proceedings in China last month, according to state media. 'JUST DO IT' The Neta dealer said many of the zero-mileage used cars he received from the company remained in his warehouse, unsold. The company "only had one message: Just do it, everyone else is doing it". Zeekr, which is being privatised by Geely Auto, booked sales with the help of Xiamen C&D, which runs dealerships for Zeekr and other brands. Xiamen C&D insured and registered the vehicles under the names of two subsidiaries in December, allowing Zeekr to count the sales before year-end, according to four dealers and two buyers, as well as a receipt shared with Reuters. Zeekr dealers sold some of the cars in subsequent months to buyers in other cities such as Beijing and Chongqing, the sources said. "The Zeekr salesman said the car would be 3,000 yuan ($420) less than a car I would get from the store and I would also get a charging coupon worth 10,000 yuan," said a buyer in another southern city. He declined to be named, citing concerns of retaliation from the automaker. The China Securities Journal reported that most of the owners it spoke to said their cars were insured by Xiamen C&D and its affiliates. China Automobile Dealers Association data showed that 2,508 of the 2,737 sales Zeekr booked in Xiamen in December were sold to companies, while 257 went to individual buyers. But data published by Xiamen's vehicle administration bureau showed just 271 cars registered in December for license plates, which genuine buyers generally obtain once they receive their cars.