China EV brands Zeekr, Neta inflated car sales to hit targets
That's according to documents reviewed by Reuters and interviews with dealers and buyers.
Documents from recent years show both companies arranged for cars to be insured before they were sold to buyers.
This enabled them to book sales early under Chinese industry car registration practices, so they could hit monthly and quarterly targets, sources said.
Switch Auto Insurance and Save Today!
Great Rates and Award-Winning Service
Affordable Auto Insurance, Customized for You
The Insurance Savings You Expect
Documents show Neta used this method for over 64,000 cars - more than half of vehicles sold from January 2023 to March 2024.
Meanwhile, premium EV brand Zeekr used the same method to book early sales in late 2024, Reuters interviewees said.
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.
The industry faces a moment of reckoning, with state media calling out the zero-mileage car practice.
Meanwhile, China's cabinet has pledged to regulate "irrational" competition.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
22 minutes ago
- Yahoo
India Trade Pact Nears, US Beef Floods In--What Investors Should Watch Next
Australia may be on the brink of deepening its trade ties with India, according to Trade Minister Don Farrell, who suggested a broader free trade deal could have been inked months ago if not for a timing clash with the May election. Speaking at the Lowy Institute, Farrell hinted that the delay was procedural, not political, and noted that his Indian counterpart is currently focused on high-stakes tariff talks with President Donald Trump's administration. The existing FTAsigned back in April 2022cut tariffs across most sectors, but left out sensitive Australian exports like chickpeas, dairy, and wheat. Farrell expects those gaps could be closed bit by bit, as part of a multi-stage rollout. Warning! GuruFocus has detected 7 Warning Signs with TSN. That optimism is surfacing just as India finalizes a major agreement with the UK and bilateral trade with Australia hits nearly A$50 billion ($32.9 billion) in 2023. Farrell said the structure of a final deal with India is likely to be incremental, owing to political realities on both sides. Still, with Canberra actively seeking to diversify away from Chinaits top trading partnera more comprehensive agreement with India could be a meaningful next step. For investors eyeing agri-exporters, particularly in grains and dairy, the next phase of negotiations could shape longer-term access to one of the world's fastest-growing consumer markets. In a separate move with potential ripple effects, Australia just lifted all remaining restrictions on US beef importsa long-standing ask from the Trump administration. The announcement triggered a celebratory post from President Trump on TruthSocial, but Farrell was quick to tamp down the political narrative, stating the decision was based on science and years of internal review. We haven't done this to win favorwe think the Americans should trade with us anyway, he said. Whether this opens the door to a broader trade pact with the US remains to be seen, but the development is unlikely to go unnoticed by investors in US meat giants like Tyson Foods (NYSE:TSN) or Brazil's JBS, both of which could stand to benefit from expanded market access. This article first appeared on GuruFocus.
Yahoo
22 minutes ago
- Yahoo
Tesla plans to expand chartered transport service, California regulator says
SAN FRANCISCO (Reuters) -Tesla has told California it would expand operations of a chartered transportation service in the Bay Area, a state regulator said on Friday. The permit does not allow the company to run vehicles autonomously, the California Public Utilities Commission said. The update follows a report that Tesla was preparing to roll out robotaxis in the Bay Area with a safety driver as soon as this weekend. "Tesla is not allowed to test or transport the public (paid or unpaid) in an AV with or without a driver," the CPUC said in an email to Reuters. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22 minutes ago
- Yahoo
Bitcoin Just Flashed a $5 Million Warning--Here's What Traders Are Betting on Next
Bitcoin (BTC-USD) lost momentum on Friday, dropping to $114,762its lowest since July 11as investor appetite for risk assets softened. The pullback followed stronger-than-expected U.S. jobs data, which dented hopes for near-term Fed rate cuts. After hitting a record high of $123,205 earlier this month, fueled by optimism around U.S. regulation and institutional inflows, Bitcoin's rally has taken a breather. Ether traded flat, and XRP slipped roughly 3% in early New York hours. Rachael Lucas, crypto analyst at BTC Markets, noted that while the broader uptrend could still be intact, momentum has cooled and traders are cautious. Warning! GuruFocus has detected 7 Warning Signs with TSN. Some market watchers see the retreat as part of a broader consolidation phase rather than a breakdown. According to FxPro's Alex Kuptsikevich, the correction is healthy and necessary after recent highs. Even if the total crypto market cap falls back to $3.4 trilliondown from the $4 trillion peakit would still likely be viewed as profit-taking, not panic selling. That level remains a key threshold to watch for longer-term trend direction. The jobs data also ended a seven-day Asian equities rally, underscoring just how sensitive risk assets have become to shifting macro signals. Meanwhile, the derivatives market is flashing signs of rising caution. Prime broker FalconX reported a $5 million put option trade on Deribit, betting on Bitcoin falling to $110,000 by August 8. It's a notable hedge that reflects growing two-way risk. We expect to see further consolidation while Bitcoin remains below monthly trendline resistance, currently at around $125,000, said Tony Sycamore of IG Australia. That same level capped Bitcoin's last breakout attemptadding to the technical ceiling traders are watching as the next test of market conviction. This article first appeared on GuruFocus.
