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China EV brands Zeekr, Neta accused of inflating car sales via insurance scheme

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BEIJING: Chinese electric vehicle brands Neta and Zeekr reportedly inflated sales figures by insuring cars before they were sold, allowing them to book early sales and meet aggressive targets.

Documents reviewed by Reuters reveal Neta recorded over 64,719 premature sales between January 2023 and March 2024, more than half its reported 117,000 sales in that period.

Zeekr, owned by Geely, used a similar method in late 2024 through its main dealer in Xiamen, according to dealers and buyers.

The practice, known as “zero-mileage used cars,“ has drawn regulatory concern amid China’s intense EV price war.

State media recently named Zeekr for inflating sales, while authorities plan to ban reselling registered cars within six months.

Neta’s parent company, Zhejiang Hozon New Energy Automobile, did not respond to requests for comment. Geely denied the allegations, stating Zeekr’s insured vehicles were for showroom display only.

However, buyers in Guangzhou and Chongqing reported discovering pre-existing insurance policies on their newly purchased cars.

Analysts say such practices distort financial reports and inventory tracking. Dealers also face pressure, with some admitting unsold cars remain in warehouses.

Neta’s sales have declined sharply since 2022, and its parent company entered bankruptcy last month. – Reuters

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BEIJING: Chinese electric vehicle brands Neta and Zeekr reportedly inflated sales figures by insuring cars before they were sold, allowing them to book early sales and meet aggressive targets.

Documents reviewed by Reuters reveal Neta recorded over 64,719 premature sales between January 2023 and March 2024, more than half its reported 117,000 sales in that period.

Zeekr, owned by Geely, used a similar method in late 2024 through its main dealer in Xiamen, according to dealers and buyers.

The practice, known as “zero-mileage used cars,“ has drawn regulatory concern amid China’s intense EV price war.

State media recently named Zeekr for inflating sales, while authorities plan to ban reselling registered cars within six months.

Neta’s parent company, Zhejiang Hozon New Energy Automobile, did not respond to requests for comment. Geely denied the allegations, stating Zeekr’s insured vehicles were for showroom display only.

However, buyers in Guangzhou and Chongqing reported discovering pre-existing insurance policies on their newly purchased cars.

Analysts say such practices distort financial reports and inventory tracking. Dealers also face pressure, with some admitting unsold cars remain in warehouses.

Neta’s sales have declined sharply since 2022, and its parent company entered bankruptcy last month. – Reuters

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