The post China plans to ban car resales within six months of registration to stop “zero-mileage” scam appeared on BitcoinEthereumNews.com.

China is considering imposing a ban on the resale of newly registered vehicles, caused by chronic overcapacity and intense price wars within the nation’s EV market, which is pressuring automakers to pursue extreme tactics to survive, including fraud. China’s Ministry of Industry and Information Technology is considering a six-month embargo on the resale of newly registered vehicles, which many see as a big swing to stamp out the practice of “zero-mileage used car” sales. The potential crackdown, which was reported by Auto Review, a publication affiliated with the China Association of Automobile Manufacturers (CAAM), is Beijing’s first concrete response to the long-standing issue in its highly competitive car market. China is considering a six-month ban on car resale The zero-mileage phenomenon refers to vehicles that are technically classified as used, despite never having been driven or transferred to actual buyers. Automakers and dealers achieve this by registering cars and insuring them before final sale, allowing them to meet aggressive internal sales quotas and report stronger performance figures. The measure, if implemented, would prevent any vehicle from being resold within six months of registration, curbing the manipulation of insurance and licensing data to record inflated sales. The issue gained national attention in May after Great Wall Motor’s CEO, Wei Jianjun, publicly criticized the scheme. The Communist Party’s People’s Daily also ran an editorial last month condemning the sale of zero-mileage used cars. China’s cabinet recently pledged to increase its supervision of the domestic auto market. According to Auto Review, automakers, including BYD and Chery, are now considering penalizing dealers who engage in practices like pre-licensing unsold vehicles. The China Automobile Dealers Association has also proposed a code system for tracking used car exports, which could further limit abuse of the policy loophole. Zeekr and Neta face accusations of inflating sales with…

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Filed under: News - @ July 19, 2025 10:18 pm