Beijing/Shanghai (Reuters) -China’s automobile industry inflated car sales for years through a government -backed gray market that recorded new cars from the assembly line and then sent abroad as “used” vehicles.
These so -called “zero states” cars have never been driven, but they allow Chinese car manufacturers to show the growth of Chinese car manufacturers and a state documents and interviews made by a state documents and interviews made with five automobile traders and car merchants.
“This is the result of a almost four -year price war that makes companies desperate for any sales,” Michigan -based consultancy Sino Auto Insights said, ” He said.
The application attracted national interest after criticizing the sale of zero -kilometer -used cars in China in May, the boss of Great Wall Motor, a Chinese car manufacturer. On June 10, the daily newspaper of the people condemned the sale of cars used in zero -kilometer at home.
Pointing out the positions of China’s best communist party leaders, the article accused these fake -used cars to reduce prices in the midst of a domestic price war and called for “challenging organizing action” to restore the order.
However, according to the Reuters review of government media reports and government documents, the export and sale of counterfeit cars are actively encouraged by regional governments in China.
According to the Reuters review of local policy documents and state media articles, local governments are vital for meeting ambitious goals for economic growth determined by Beijing.
Reuters identified 20 local government in China, including large export centers, including large export centers such as Guangdong and Sichuan.
Tactics are to create extra licenses for the export of zero -used cars, to monitor tax deduction claims quickly, to invest in export infrastructure and to finance network creation activities to promote zero -used car exports.
Zero -used automobile export market works as follows: As a new car comes out of the assembly line, an exporter purchases directly from the automobile manufacturer or a seller, records it with a Chinese plate and then marks as a second -hand car for shipping abroad. Along the way, the car manufacturer separates the car as sold and records the income.
The support shows from local governments will make very little logical anywhere except China’s centrally planned economy. However, rapid growth in sales and employment can lead to the separation of local authorities, while missing economic goals that drip from Beijing can provide promotion or unlock new funds.
These export companies both buy and sell a single car, the transaction value is twice the new or used automobile purchases, so local governments, GDP statistics quickly and artificially to increase the grass to establish a store on the court, he said.
The tactic shows that China’s automobile industry – the largest in the world – allows production to overcome demand, to direct a long -term domestic price war and encourage the automotive “unloading” charges.
The Chinese passenger car Association Secretary General Cuidongshu praised the application at the beginning of this month during an online panel discussion organized by Tencent’s News Portal, and said that car manufacturers in China cannot access some markets that they cannot access some markets that they cannot access because of their global increasing increasing.
In addition, Chinese brands have not yet entered countries in countries that help to meet the overseas demand for cars, he added.
Reuters contacted all the local governments mentioned in this article for comment, but none of them answered. The Chinese State Council and the Ministry of Commerce did not respond to the request for comments.
State support
Local government support took various forms from simplifying the documents to allocating extra quota for local vehicle records, and establishing free warehouses for cars that have been used zero miles close to China’s territory and sea borders.
In February 2024, the South City, a technology center of China and a technology center that hosts Huawei and Tencent, promised to expand the exports of zero Mileage cars as part of their efforts to achieve an annual target for all kinds of 400,000 vehicle exports.
Recently, Guangzhou, the Southern Chinese Metropolis, announced earlier this year to allocate extra quotas for local records limited to reduce traffic blockage and air pollution in the city, and created a mechanism to support and accelerate the export of zero popular gasoline vehicles.
Xinmi, a region of Zhengzhou, the state capital of the third most crowded state of China, said in February, the local company company company, LTD “to encourage exports of zero mine to use exports to direct domestic sales,” he said.
Reuters found that a dozen municipality has increased the exports of zero -used cars as part of the strategies of the municipality or growth plans.
One of the most important economic engines in China, Sichuan Province, in a policy document in October, 100 Sichuan-based car vendors are now active in the Alibaba International e-commerce platforms such as e-commerce platforms, such as “zero Milege for NEVs used for the” online export ecosystem “support the creation of the creation.
Xinjiasheng did not respond to requests for supply chain management and Alibaba comments.
Market change
After 2019, the application began after a while when China allowed cars to be exported to other countries. According to Wang Meng, Advisor to the Chinese Automobile Dealers Association, now thousands of merchants are involved in transferring new cars used to qualify for the channel.
Wang is estimated that 90% of 436,000 passengers and commercial vehicles exported by China in 2024 are “zero -half”.
According to the Chinese Ginek Cars Association, China passed Japan in 2023 to become the world’s largest exporter in 2023 and exported 6.41 million vehicles last year. According to Wang’s estimates, approximately 6% of them would actually be used cars with zero -storey.
Two dealers and two industrial experts, most of the cars used zero -storey gasoline and therefore are less desirable in the Chinese market, he said. However, electric vehicles subject to generous purchasing subsidies financed by the state also constitute an important section.
Huanyu Auto, a vehicle vendor used in China’s Western Chongqing metropolis, expanded to the car used zero kilos of zero kilos in 2022.
William NG, Director of the International Market Department of the company, was so good in 2022 and 2023 that they were so good that they could make a profit of 10,000 yuan ($ 1,400) from an electric sedant.
Criticism began to increase. On June 7, Chinese car manufacturer Changan President Zhu Huarong called for a print on the export of zero -kilograms used at a Chinese automobile conference and said that the application abroad “largely damage the image of Chinese brands”. Changan did not respond to the request for more comments.
Massachusetts -based consultancy Autoxing, the founder of Autoxing, who gave ideas to foreign investors about Chinese home companies, said that the application could lead to suspicion of Chinese car manufacturers of foreign investors.
“How many people are real or inflated? Nobody knows,” he said.
Concerns ‘unloading’
The proliferation of new cars sent to be sold with “used” labels strengthens the fear that China has evacuated subsidized vehicles abroad at a time when Beijing is now trying to find export markets outside the United States.
Some countries that are worried that the automobile flux will be crowded and confusing consumers are starting to push back.
Michael Dunne, a consultant who closely follows the Chinese automobile industry, said, “We definitely see friction and tension in the markets where the manufacturers are there.” He said.
In 2023, Russia issued a government decree that effectively prohibited zero -used cars from brands with official distributors in the country. Heihe Trade Office, a Chinese city on the Chinese-Russian border, said that it was applied to Chinese brands such as Chery, Changan and Geely on its website last November.
Geely refused to comment unless Chery and Changan respond to comments.
Market regulators of other countries, including Jordan, finance used automobile definitions for a longer period of time after the license or production of a vehicle before being classified as used.
Huanyu Auto’dan NG, mother and pop stores such as new participants, such as increasing competition and zero -used cars that sell cars of Tiktokets caused less profitable, he said.
“They were selling vases, wine, and now they were selling cars in the same way.” He said. “This chaos.”
(Reporting by Beijing and Shanghai news chambers; Additional reporting by Gleb Stolyarov in Tbilisi; Mike Colias and Michael Learmonth)
