China’s Ministry of Commerce is meeting with some of the country’s biggest automakers to discuss whether some of them are faking sales to boost their numbers or reach targets. If proven true, it could be masking weakening sales in mainland China.
The meeting will also include industry trade groups such as the China Association of Automobile Manufacturers (CAAM), China Automobile Dealers Association (CADA), and online car distribution channels.
Both Reuters and Bloomberg reports that it was Great Wall Motor Co. chairman, Wei Jianjun that made the Chinese government took notice.
Wei said in an interview with Sina Finance that Chinese car brands are resorting to a practice called, “zero-mileage cars” to move vehicles as a result of the years-long price war. These “zero-mileage cars” are essentially new cars with no or little mileage that appear on the resale market and come with substantial discounts despite not reaching the end consumer in the first place. Carmakers have resorted to this zero-mileage practice as they’ve failed to meet their sales targets.
It’s unclear which companies are involved, but Wei estimated that as many as 4,000 second-hand sellers post ‘zero-mileage’ cars on online platforms. As a result, Wei warned of an unhealth outlook for China’s car industry. Car brands such as BYD, Dongfeng, and even GWM are being called to the confidential meeting.
Wei pointed to the practice as indicative of the chaos engulfing China’s auto sector, and warned the industry is facing its own China Evergrande Group—the real estate developer and builder that has defaulted on loans and become an emblem of the country’s years-long property crisis.
China Evergrande also created a new-energy vehicle unit to build and sell EVs that has struggled to come to market.
Too many China brands.... competition is tough amongst themselves
ReplyDeleteSome automakers are faking sales to claim more subsidies from the Chinese government
ReplyDeleteThis is not a new practice for Chinese car brands in China, where they can get away with this. CCP doesnt act on it since it also boosted the car sales figures artificially.
ReplyDeleteKaya pala di transparent byd sa sales figures dito pinas, may magic.
ReplyDeleteBYD is not a member of CAMPI
DeleteSales numbers of BYD in the Philippines are real as evident with the number of Atto 3,Dolphin,Sealion 6,Tang and Shark BYD vehicles in Philippine roads
AC Mobility and Ayala Group don't fake their sales numbers
if youre an insider then congrats on sharing information
Delete10k byd sold in ph? Take it with a grain of salt.
ReplyDeleteBYD is managed by Ayala here not by the mainland company (that's not to say the BYD can be proven complicit with this practice until an investigation happens).
DeleteAlso, there are no subsidies here to fight and manipulate sales figures for. And with Ayala being a publicly traded company, sales figures of their subsidiaries (ACMobility=BYD) are factored in during earnings calls and quarterly reports. I highly doubt they would practice anything that would damage their reputation like that and for very little gain, if any.
How can you be so sure that ACMobility is not importing these zero mileage cars that are rotting across Chinese dealerships, with their knowledge? Other China branded cars might be doing these as well since the EV demand is weakening in China
DeleteIt doesn't really matter if ACMobility is importing them I think (there would definitely be issues if literally rotting sila tho, but it doesn't seem to be that way). We already get models which are old news na sa China so it could be possible but this is true also for our car imports even from established manufacturers and, again, sales - in the Philippines - ang pinaguusapan, and as far as that goes ang sales reporting ng ACMobility ay subject sa Ayala oversight.
DeleteAgreed. They stopped reporting their sales numbers "officially" to organizations such as EVAP. Unlike their KIA subsidiary, BYD is not part of CAMPI so they are not obligated to declare their numbers.
DeleteRosy sales numbers = high stock market price
ReplyDeletenever believe anything from China
ReplyDeleteSee what they say about the uyghurs, Tiananmen square.
they apply the same policy for external data
Chinese are knows for fake products, don't forget. That's their forte.
ReplyDelete"Fake it until you make it"- great Chinese philosopher Wang Bu
ReplyDeleteI think this is kinda like Tesla reporting "deliveries" of their cars instead of sales which can be misleading as reports are showing growing lots of their unsold inventory in many places.
ReplyDeleteThis kind of news may encourage the cynical amongst us to jump on the opportunity to use this as proof against the reports of increasing chinese car ownership in the Philippines but we don't have the gigantic lots of unsold cars that can be seen in China and the increasing cars on the road here and in the neighbor's garage aren't made up.
Maybe this will push some chinese brands here to join CAMPI to gain/increase the legitimacy of their reported sales.
But with weakening demand in China and cut throat competition there, chinese car brands are resorting to cut corners to lower the prices. Plus China is dumping cars to countries like PH to sell their cars, that is why China cars sold here are cheap and discounted.
DeleteFor me, the car 'dumping' is great for us customers. Lots of old inventory that needs to be sold/disposed of - same as so many other kinds of (quality) products (phones, appliances, computer parts, etc.) Last year's models are ~40% off while products last! <--- me looking at samsung's sales right now haha. And it's not a given that we're getting inferior products in the process of the 'dumping', in fact, I think the situation in China is leaning the opposite direction because of the trend/emphasis of chinese manufacturers stuffing as much tech (gimmicky or otherwise) in their cars to gain market share in China means that they can't afford to develop a reputation of making inferior quality cars. There may have been chinese car companies who chose cheaper manufacturing for short term gain/cost-cutting but I think (definitely not an expert here) that those companies were the earliest victims of the cut throat competition over there (and I don't think we are importing cars of some dead chinese manufacturers).
DeleteProblem is byd dumping here old models
DeleteInteresting scheme.
ReplyDeleteFor a time, you would see a lot of “just released” less than 100 kms Subaru cars sold in the secondary market.
Did you guys see the bilyonaryo news regarding one of the China dealers of BYD?
ReplyDeletehttps://bilyonaryo.com/2025/05/29/big-byd-dealer-in-eastern-china-goes-out-of-business/mobility/
That's a problem of bankrupt franchised dealership network and not by BYD management
DeleteThat dealer is one of the prestigeous dealers in China, but they are in financial turmoil a year ago and employees werent paid for months now. Now the dealership and BYD are accusing each other of causing the financial crisis
DeleteIf employees of a dealership (or group of) weren't/aren't being paid that's solely on the dealership and the suck for that.
DeleteI'm not familiar with the situation but BYD might not have had a choice if that dealer is the biggest player in that regional market, before knowing that the dealer could be capable of doing such a bad job, of course. For something similar I've read that, in the USA, Hyundai has dealership partners that have a horrible reputation but Hyundai had no choice but to work with them since they make the most sense for that part of the country. But then the reputation of those bad dealerships (which are essentially local monopolies in the states) start to blur the lines with the reputation of Hyundai since a lot of people will think they are one and the same.
Your car, your brand, of course its your responsibility to car buyers/owners.
DeleteVolkswagen,Tesla and Toyota are likely the ones involved in that dirty practices in China
ReplyDeleteYou idiot, read and undertstand the article boy. GWM chairman said CHINESE CAR BRANDS. GWM chairman already spoke several times against many malpractices of chinese car brands
DeleteSure buddy…
Deleteand you are a Chinese car propagandist. Yeah I’ve seen your posts here and all are pro China car brands
DeleteGWM chairman is a great person, not afraid to speak about malpractices of china car brands. Its just the latest, He already spoke several times in the past about chinese car brands malpractices
ReplyDeleteLOL it already states in the article which Automakers were directly being investigated. BYD is one of them. Don't spread fake news.
ReplyDelete