US Edition
China EV brands Zeekr, Neta inflated car sales using insurance scheme
CHINA, JUL 19 – Zeekr and Neta used early insurance registrations to inflate sales, with Neta booking over 64,000 premature sales between Jan 2023 and Mar 2024 to meet targets amid market pressure.
- According to Reuters, Chinese EV brands Zeekr and Neta inflated sales figures in recent years; Reuters cited documents and interviews with dealers and buyers detailing over 60,000 cars for Neta.
- An unnamed senior sales manager said that using zero-mileage used cars prematurely recognized sales, misleading the capital market.
- From January 2023 to March 2024, Neta pre-registered at least 64,719 vehicles, Reuters noted this accounted for over half of its reported 117,000 sales during the 15-month period.
- In Hong Kong, shares in Geely Auto dropped as much as 4%, marking the steepest decline since June 26, Reuters reported.
- On Saturday, the China Association of Auto Manufacturers said the Ministry of Industry and Information Technology plans to ban resale of cars within six months, targeting the zero-mileage used car scheme.
40 Articles
40 Articles
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Chinese e-car manufacturers Neta and Zeekr have artificially increased their sales figures, and the government is planning to regulate against such practices.
With the help of an insurance trick, e-car manufacturers Neta and Zeekr have hoarded their sales figures. The Chinese government is increasingly trying to restrict such practices.
Chinese EV Brands Neta and Zeekr Inflating Sales to Meet Targets
Chinese electric vehicle brands Neta and Zeekr are accused of inflating sales to meet targets by registering cars as sold before actual sales were finalized. Documents and interviews reveal Neta pre-booked sales of 64,719 cars, more than half of its reported sales for a given period.
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