The Voice News: BEIJING — China’s official Communist Party newspaper, People’s Daily, has called for a firm crackdown on the sale of “zero-mileage used cars” — brand new vehicles sold as heavily discounted second-hand cars to clear inventory.
This practice, increasingly common among Chinese automakers, inflates sales figures but disrupts the normal market order. The People’s Daily article criticized the tactic as a form of “price cutting” that harms both the industry and consumers. It follows recent public condemnation from Great Wall Motor’s Chairman Wei Jianjun and discussions between China’s Commerce Ministry and car manufacturers on the issue.
The newspaper said that while such sales might help reduce inventory temporarily, they squeeze profit margins, increase losses, and undermine investment in innovation and product quality — threatening the long-term growth of China’s auto industry. For consumers, zero-mileage used cars may seem like bargains but carry hidden risks such as loss of first-owner benefits, possible battery wear, and faster depreciation.
The article also pointed to how this practice distorts market data, hurts fair competition, and destabilizes both new and used car markets. The People’s Daily specifically urged electric vehicle makers to focus less on sales volume and “data worship” and more on improving product quality and technological innovation.
To tackle the issue, the newspaper recommended stronger regulatory oversight of second-hand vehicle registrations, implementation of vehicle lifecycle tracking, and stricter control over immediate resale after registration.
China’s auto sector has been struggling with oversupply and sluggish demand amid ongoing deflationary pressures and the impact of U.S. tariffs. Price wars have become widespread, pushing automakers to resort to aggressive tactics like selling zero-mileage used cars.
Once stricter market competition rules are enforced, the People’s Daily concluded, zero-mileage used cars will no longer be sustainable.