“Second -hand cars with zero mileage”. China's Trade Ministry convened car manufacturers due to a strange phenomenon in the market
Selling machines in China. Photo: Scharfsinn86 | Dreamstime.com
The China Ministry of Commerce will meet with industry organizations and car manufacturers, including Byd and Dongfeng Motor, to discuss the increase of “used cars” sales that have never been driven, Reuters said a source that knows the subject directly.
The meeting is scheduled for Tuesday afternoon, said the person, speaking subject to anonymity, because the details of the meeting are confidential.
This meeting will take place after President Great Wall Motor, Wei Jianjun, said in an interview with Sina Finance last week that a strange phenomenon called “second-hand cars with zero kilometers” appeared on the Chinese market as a result of the industry prices war that lasts for years.
The phenomenon, he said, involves cars that have been registered and have registration plates-which marks them as being sold-but have never been driven, being sold on the used market.
How the phenomenon “cars in the second hand with zero mileage” appeared
Wei estimated that at least 3,000 – 4,000 sellers on Chinese car platforms sell such cars.
The Reuters source explained that this tactic has been used as a potential method in the industry for manufacturers and car dealers to increase sales of new cars, given that they have tried to reach ambitious sales targets.
Among the other participants invited to the meeting are the Association of Automobile Producers in China (CAAM), the Association of Automobile Dealers in China (Cada), as well as some commercialization platforms, according to the person.
The Ministry of Commerce, Byd, Dongfeng Motor and the bath did not respond immediately to a request for statements. Great Wall and Caam refused to comment.
The actions of Chinese car producers such as Byd and Leapmotor dropped on the stock market after Reuters wrote about the scheduled meeting, both decreasing by 3.1%. Hang Seng Automobile Index index in Hong Kong has lost over two percent.
Photo: © Scharfsinn86 | Dreamstime.com
