Latest news with #AutoReview
Canada News.Net
7 days ago
- Automotive
- Canada News.Net
Auto Review retracts timeline on China's used car crackdown
SHANGHAI, China: A leading Chinese automotive industry publication has walked back claims that regulators plan to ban the resale of cars within six months of their registration—a move that would have directly targeted the controversial "zero-mileage" used car market. Auto Review, the official media outlet of the China Association of Automobile Manufacturers (CAAM), issued a correction after previously reporting that the Ministry of Industry and Information Technology (MIIT) was preparing to impose a six-month resale ban. In a statement to Reuters, Auto Review acknowledged the article "contained inaccurate descriptions related to the MIIT and other relevant authorities concerning zero-mileage used cars." The outlet said those inaccuracies had been removed and corrected. The updated version of the article now states that MIIT is working with other agencies to "regulate the zero-mileage used cars" and manage the issue at its source, without mentioning a specific timeline or resale ban. Auto Review had also previously reported that the China Automobile Dealers Association had proposed a new code system for used car exports. That line was revised to say the group had proposed to "set up a relevant mechanism," again without further detail. The article—originally posted on the publication's official WeChat account—retained parts of the original reporting, including mentions that automakers such as Chery and BYD are among those considering more vigorous enforcement against dealers who register vehicles before actual sales occur. Zero-mileage used cars are a growing feature of China's intensely competitive auto market. The practice involves registering and insuring unsold new vehicles to inflate reported sales numbers. These lightly used vehicles are then resold at a discount, creating confusion in the market and distorting actual demand. The tactic has flourished amid a prolonged price war and persistent overcapacity in China's auto sector, particularly in the electric vehicle segment. In response, signs of a potential government clampdown have emerged in recent weeks. A Communist Party-affiliated newspaper sharply criticized the practice in June. China's State Council pledged last week to rein in what it called "irrational" competition in the domestic electric vehicle industry. While the corrected article signals a more cautious regulatory approach than initially reported, industry watchers still see mounting pressure from Beijing to curb manipulative sales strategies and restore balance in the sector.
TimesLIVE
21-07-2025
- Automotive
- TimesLIVE
China auto industry group publication corrects report on ‘zero-mileage' crackdown plans
A publication of China's top auto industry association said on Monday its report about China's industry ministry planning to ban the resale of cars within six months of their initial registration was "inaccurate", and it deleted that line from its story. Auto Review, the official media outlet run by the China Association of Automobile Manufacturers, said in a statement to Reuters that its article published on Saturday "contained inaccurate descriptions related to the ministry of industry and information technology (MIIT) and other relevant authorities concerning zero-mileage used cars". "The inaccuracies have since been deleted and corrected," it said. The publication updated its story to read: "MIIT plans to regulate the zero-mileage used cars together with relevant departments and manage the issue from its source." Auto Review had reported on Saturday that MIIT planned to ban the resale of new cars within six months after their registration as part of efforts to combat sales of zero-mileage used cars. It reported the China Automobile Dealers Association, another industry group, had separately proposed a code system for exports of used cars. On Monday, Auto Review also corrected the line in the article to say the group proposed to "set up a relevant mechanism", without elaboration. The article, published on its official WeChat account, also said Chery and BYD were among companies planning to hold dealers accountable for violations, including licensing cars before they were sold. The portion of the article remained unchanged after the correction. Zero-mileage used cars have emerged in China as a result of the uniquely cutthroat competition for sales in the world's largest car market, which is reeling from a brutal, years-long price war caused by chronic overcapacity. The practice involves insuring a new vehicle before it is sold, allowing carmakers and their dealers to meet sales targets. There have been several signs China's central government was preparing a crackdown, from a Communist Party newspaper condemning zero-mileage used cars last month to the country's cabinet pledging last Wednesday it would control "irrational" competition in the domestic electric vehicle industry.
&w=3840&q=100)
Business Standard
19-07-2025
- Automotive
- Business Standard
What are zero-mileage used cars & why is China planning to ban their sale?
China's ministry of industry is looking to ban the resale of vehicles within six months of their first registration, in a move to clamp down on the sale of so-called zero-mileage used cars, according to Auto Review, a publication backed by the China Association of Automobile Manufacturers. What are zero-mileage used cars? These vehicles are technically listed as used but have barely or never been driven. They appear as a result of intense competition in the Chinese car market, where manufacturers and dealers insure and register new cars without actual buyers in order to meet sales targets. This practice has grown widespread due to years of aggressive price cuts and oversupply in the world's largest automotive market. However, it often creates complications for customers who later purchase these vehicles. Why is the resale of zero-mileage used cars an issue? Misleading sales figures: Registering unsold cars as 'sold' distorts true market demand. This gives a false impression of a company's performance, affecting industry data and potentially misleading investors. Buyer inconveniences: Customers who purchase zero-mileage used cars might face warranty issues, as coverage usually starts from the date of initial registration. These cars may also have lower resale value and come with insurance or registration documents that are older than expected. Abuse of subsidies and export rules: Some manufacturers have reportedly used such cars to wrongly claim government subsidies for new energy vehicles (NEVs), which are based on sales numbers. Others may label these cars as 'used' to ease export restrictions, as some countries have looser rules for used vehicle imports. Proposed measures and industry pushback The Auto Review editorial stated that the China Automobile Dealers Association has also suggested introducing a coding system to regulate used car exports. Additionally, automakers like Chery and BYD are reportedly planning to penalise dealers who license cars before they are genuinely sold. If implemented, these measures would represent the first government-led effort to address the issue on a national scale. Mounting pressure for action The issue gained public attention in May when Great Wall Motor CEO Wei Jianjun criticised the practice. Since then, signs have emerged that central authorities are preparing a crackdown. Last month, a Communist Party newspaper published a piece criticising the trend, and on Friday (July 18), the Chinese cabinet said it would work to rein in what it called 'irrational' competition in the domestic automotive industry.
Yahoo
19-07-2025
- Automotive
- Yahoo
China plans crackdown on zero-mileage used car sales
SHANGHAI (Reuters) -China's industry ministry is planning to ban the resale of cars within six months of their initial registration as part of efforts to combat sales of so-called zero-mileage used cars, an industry association publication reported on Saturday. Zero-mileage used cars have emerged in China as a result of the uniquely cutthroat competition for sales in the world's largest auto market, which is reeling from a brutal, years-long price war caused by chronic overcapacity. The practice involves insuring a new vehicle before it is sold, allowing automakers and their dealers to meet sales targets. But it can create hassles for customers. Auto Review, a publication run by the China Association of Automobile Manufacturers, reported the plan in an editorial published on its WeChat account. It said that the China Automobile Dealers Association, another industry group, had separately proposed a code system for exports of used cars. The editorial added that Chery and BYD were among companies planning to hold dealers accountable for violations, including licensing cars before they are sold. The measures, if enforced, would mark the first policy action taken by the Chinese government to stop the practice, which became a nationwide issue after Great Wall Motor CEO Wei Jianjun called it out in May. Since then, there have been several signs China's central government was preparing a crackdown, from a Communist Party newspaper condemning zero-mileage used cars last month to the country's cabinet pledging on Friday that it would control "irrational" competition in the domestic auto industry. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Deccan Herald
19-07-2025
- Automotive
- Deccan Herald
China plans to ban new cars from being resold within six months after registration
Auto Review, a publication run by the China Association of Automobile Manufacturers, reported the move in an editorial published on its WeChat account.
