China’s commerce ministry is set to convene a meeting with industry bodies and major automakers, including BYD and Dongfeng Motor, to address the issue of zero-mileage used cars in the Chinese market. This phenomenon has emerged as a result of intense price wars within the auto industry, leading to the sale of vehicles that have never been driven.
According to a Reuters report, the meeting is scheduled for Tuesday afternoon and will also include representatives from the China Association of Automobile Manufacturers (CAAM), the China Automobile Dealers Association (CADA), and various used car trading platforms. Great Wall Motor chairman Wei Jianjun recently highlighted the prevalence of zero-mileage used cars in China, with thousands of sellers offering such vehicles on used car platforms.
The concept of zero-mileage used cars refers to vehicles that have been registered and assigned license plates but have never been driven. This practice has raised concerns within the industry and prompted regulators to take action. In a seminar organized by regulatory authorities, participants discussed strategies to promote the high-quality development of used car distribution and address the issue of zero-kilometer used cars.
The prevalence of zero-mileage used cars has sparked debate on Chinese social media platforms, with many questioning the ethics of selling vehicles that have never been used. Some industry experts view this practice as a way for automakers to meet aggressive sales targets by offering covert price discounts.
In a related development, BYD recently announced wide-ranging price discounts, raising concerns about escalating price competition in the Chinese market. Analysts believe that BYD’s actions could prompt other automakers to follow suit, leading to further price wars and market volatility.
Overall, the discussion surrounding zero-mileage used cars highlights the challenges facing the Chinese auto industry and the need for regulatory oversight to ensure fair and transparent practices. As the industry continues to evolve, stakeholders must work together to promote sustainable growth and innovation in the used car market.
