Core Viewpoint - The phenomenon of "0 kilometer used cars" has become a widespread issue in the automotive industry, particularly affecting the new energy vehicle sector, leading to market distortions and consumer rights violations [1][2][8]. Group 1: Industry Practices - The sale of "0 kilometer used cars" has been a long-standing secret among used car dealers, who often refer to these vehicles as "quasi-new cars" [1]. - In the traditional dealership model, manufacturers set sales targets for dealers, who may resort to selling unsold inventory as "0 kilometer used cars" to meet these targets and receive rebates [1][4]. - The rapid expansion of production capacity in the new energy vehicle era, coupled with government incentives, has led to an increase in the number of "0 kilometer used cars" and various associated irregularities [2][5]. Group 2: Market Impact - The presence of "0 kilometer used cars" disrupts the normal pricing system in the automotive market, intensifying unhealthy competition and making it difficult for compliant businesses to maintain reasonable profits [8]. - This practice has led to a decline in product quality and long-term R&D investment as companies prioritize short-term sales figures [8]. - The reported data indicates that in 2024, approximately 12.7% of the 19.61 million used cars traded in China were "0 kilometer used cars," with over 60% of these being new energy vehicles [5]. Group 3: Consumer Consequences - Consumers purchasing "0 kilometer used cars" may lose significant rights and benefits associated with first ownership, such as warranties and insurance discounts [7]. - The complexity of transactions and potential gray market activities make it challenging for consumers to seek recourse if issues arise with these vehicles [7]. Group 4: Case Studies - Neta Auto is highlighted as a case where unconventional methods were used to inflate sales figures, with over 60,000 vehicles sold through such practices, representing more than half of their reported total sales [9][11]. - Zeekr has also been implicated in similar practices, selling insured inventory as new cars, leading to numerous consumer complaints [12][13]. Group 5: Export Dynamics - The export of "0 kilometer used cars" has surged, with a significant portion of these vehicles being new energy models, benefiting from the absence of purchase tax [19]. - The export volume of used cars from China increased dramatically from 3,000 units in 2019 to 275,000 units in five years, with a substantial share being "0 kilometer used cars" [19]. Group 6: Regulatory Response - The automotive industry is beginning to recognize the need for regulatory oversight to address the chaotic competition and unethical practices surrounding "0 kilometer used cars" [23]. - Industry stakeholders are exploring solutions to mitigate the negative impacts of these practices while maintaining competitive pricing [23].

Core Insights - The phenomenon of "zero-kilometer used cars" has emerged in the Chinese automotive market, involving a significant number of dealers and creating a gray industrial chain that highlights issues of excessive competition within the industry [1][2][3] - This practice involves automakers, dealers, and used car merchants forming a profit transmission chain, where vehicles are registered and then sold as used cars to meet sales targets, leading to inflated sales figures without actual consumer delivery [1][2] Industry Dynamics - The loopholes in the new energy vehicle subsidy policy have facilitated the rise of "zero-kilometer used cars," with some companies exploiting these policies to create a subsidy arbitrage chain [2][3] - The presence of these vehicles disrupts the new car market by offering significant price advantages, which can lead to a depreciation in the perceived value of new cars and weaken brand pricing power [2][3] Market Impact - "Zero-kilometer used cars" have distorted the pricing logic of the used car market, undermining traditional valuation methods based on usage and mileage [3][4] - The proliferation of these vehicles has led to a trust crisis in the used car market, as some dealers engage in fraudulent practices such as odometer tampering [3][4] Consumer Risks - Consumers face multiple risks when purchasing "zero-kilometer used cars," including the loss of warranty and service benefits, as well as potential depreciation in resale value [3][4] - Hidden mechanical issues and potential legal disputes due to undisclosed vehicle histories pose additional risks for consumers [4] Regulatory Response - Regulatory bodies have begun to take action against these practices, with measures aimed at curbing false sales and subsidy exploitation, and improving vehicle registration traceability [4][5] - Future policy measures may include legislative definitions of "zero-kilometer used cars," inventory warning systems, and changes in revenue recognition standards to prevent data manipulation [4][5] Industry Self-Regulation - Some automakers are adjusting their sales targets to focus on actual consumer deliveries rather than inventory pressure, which may help reduce the occurrence of "zero-kilometer used cars" [5][6] - Leading used car platforms are enhancing quality inspection standards and requiring transparency in vehicle history to mitigate consumer risks [5][6] Long-term Solutions - The root cause of the "zero-kilometer used car" issue lies in the automotive industry's over-reliance on scale expansion, necessitating a shift from price competition to value competition [5][6] - A fundamental change in development logic is essential for creating a sustainable automotive ecosystem, emphasizing product innovation and core competitiveness over data manipulation [5][6][7]

Core Viewpoint - The article highlights the issue of "zero kilometer used cars" in the automotive industry, exposing the gray area where vehicles are registered but not actually delivered to consumers, leading to market distortions and potential financial misrepresentation by car manufacturers [1][6]. Group 1: Industry Dynamics - The phenomenon of "zero kilometer used cars" involves a network of car manufacturers, dealers, and used car merchants, where manufacturers transfer inventory pressure to dealers through sales quotas [2][4]. - A significant number of "quasi-new cars" with mileage under 100 kilometers are being sold across various brands, indicating a competitive and rapidly changing market [2][4]. - Dealers are incentivized to sell these vehicles at lower prices to recover funds and meet manufacturer targets, often resulting in significant profit margins for used car merchants [4][6]. Group 2: Market Impact - The prevalence of "zero kilometer used cars" is distorting the pricing structure in the automotive market, with some vehicles being sold at prices significantly lower than their original retail value [6][7]. - The practice is leading to a cycle of price reductions across the industry, with traditional dealers also lowering prices to remain competitive, which may not benefit consumers due to the loss of first-owner rights and depreciation [6][7]. - The issue is exacerbated by the misuse of government vehicle replacement subsidies, which undermines the original intent of these policies [7][8]. Group 3: Regulatory Outlook - Experts predict that future regulations surrounding "zero kilometer used cars" will become clearer, with a focus on establishing a vehicle lifecycle tracking system and stricter controls on the classification of new vehicles [8]. - There is a call for manufacturers to abandon the "price for volume" strategy and instead focus on product innovation and service upgrades to enhance competitiveness [8]. - Legislative efforts are needed to define legal responsibilities regarding odometer tampering and subsidy misuse, aiming to protect consumer rights [8].

Core Viewpoint - The Ministry of Commerce has initiated an investigation into the "zero-kilometer used car" phenomenon, focusing on combating false sales and subsidy exploitation, while emphasizing the need to regulate market order [1][2]. Group 1: Industry Issues - The "zero-kilometer used car" issue is seen as a distortion of market rules, where new cars are registered as used cars immediately after being sold, creating a misleading sales figure [3][5]. - Data manipulation is prevalent, with manufacturers and dealers registering unsold new cars as sold to inflate sales figures, misleading investors [5]. - The practice of exploiting vehicle replacement subsidies is noted, where used car dealers acquire "zero-kilometer used cars" at low prices and claim government subsidies, undermining the original intent of these policies [5][13]. Group 2: Market Dynamics - The phenomenon is exacerbated by a chaotic pricing system, leading to reduced profits for traditional used car dealers and fostering unhealthy competition within the industry [5]. - The influx of exported vehicles returning to the domestic market at lower prices due to saturation in overseas markets is impacting local pricing and competition [5]. - The current price war in the automotive market has led to "zero-kilometer used cars" being priced significantly lower than new cars, contributing to their increased prevalence [12]. Group 3: Regulatory Response - The Ministry of Commerce's closed-door meeting aimed to gather reports from participating companies about the situation, indicating a regulatory response to the ongoing issues [1][2][3]. - The specifics of how "zero-kilometer used cars" will be defined and regulated remain unclear, leaving the market in a state of uncertainty regarding compliance and operational impacts [10]. Group 4: Consumer Implications - The existence of "zero-kilometer used cars" raises concerns about consumer rights, as buyers may lose certain benefits associated with being the first owner, such as lifetime warranties [13][14]. - The potential for increased overall vehicle costs is highlighted, as the resale value of these cars may be significantly lower than traditional used cars due to the initial registration as a used vehicle [14].

Core Viewpoint - The emergence of "zero-kilometer used cars" in the automotive industry is a result of excessive sales pressure on manufacturers, leading to inventory transfer disguised as new cars, which threatens the pricing structure of both new and used car markets [1][2][10] Group 1: Causes of Zero-Kilometer Used Cars - The term "zero-kilometer used cars" refers to vehicles that have been registered but not used, differing only in paperwork from new cars [2] - Manufacturers have pressured dealers into over-purchasing vehicles through aggressive sales policies, resulting in excess inventory that is often sold as zero-kilometer used cars [2][3] - The phenomenon is exacerbated by the need for dealers to quickly recover cash flow, as holding inventory incurs significant costs [3] Group 2: Market Dynamics and Distribution - Zero-kilometer used cars are primarily sold to individual consumers, rental fleets, and for export [4][5] - The majority of these vehicles are directed towards ride-hailing services, where they can be rented out or sold under a "rent-to-own" model [5] - There is a growing trend of exporting zero-kilometer used cars, which can sometimes be sold as new vehicles in foreign markets, yielding higher profits [5][6] Group 3: Industry Impact and Concerns - The proliferation of zero-kilometer used cars is expected to further intensify competition in an already saturated market, potentially destabilizing the pricing structure [1][2] - The existence of a large number of dealers involved in the zero-kilometer used car market contributes to a fragmented and chaotic industry landscape [8] - There are concerns regarding the long-term implications of this trend on manufacturers' sales data and overall market health, as it distorts consumer perceptions and disrupts production planning [9][10]

Core Viewpoint - The issue of "zero-kilometer used cars" has emerged as a significant topic of discussion, revealing a fraudulent practice where unsold new cars are registered as used cars to inflate sales figures and mislead the capital market about the true supply and demand in the industry [1] Group 1: Industry Practices - "Zero-kilometer used cars" refer to new cars that are registered but not used, circulating as used cars, which creates a false market prosperity [1] - This practice involves a gray industrial chain with participation from traditional car manufacturers and new energy brands, indicating widespread involvement across the industry [1] - The manipulation of vehicle registration and resale undermines the integrity of market data and can lead to misinterpretation of industry health [1] Group 2: Consumer Impact - Consumers face hidden and long-term damages from "zero-kilometer used cars," including the loss of exclusive rights such as lifetime warranties once the car is transferred [1] - The resale value of these vehicles is significantly affected, as it is calculated based on the initial registration date, leading to substantial depreciation [1] - Long-term inventory issues can result in vehicle problems such as battery depletion and tire deformation, further impacting consumer interests [1] Group 3: Regulatory Recommendations - There is a need for enhanced regulation on the registration and market entry of used cars, including the establishment of a vehicle lifecycle traceability system using blockchain technology for transparency [2] - The industry should promote self-discipline among leading companies to move away from a focus solely on sales figures and avoid chaotic competition [2] - Consumer education is essential, advocating for practices such as the "three checks and three looks" method to ensure informed purchasing decisions [2] Group 4: Future Outlook - As China transitions from an "automobile power" to an "automobile strong power," addressing the "zero-kilometer used car" issue is crucial for high-quality development in the automotive sector [2]

Core Viewpoint - The Ministry of Commerce has initiated an investigation into the "zero-kilometer used car" phenomenon, emphasizing the need to combat false sales and subsidy exploitation, while aiming to regulate market order [1][2]. Group 1: Industry Issues - The "zero-kilometer used car" issue is seen as a distortion of market rules, where new cars are registered but not actually sold, creating a misleading impression of sales figures [3][5]. - Data manipulation is prevalent, with manufacturers and dealers registering unsold new cars as sold to inflate sales figures, misleading investors [5]. - The practice of exploiting subsidies is highlighted, where used car dealers acquire "zero-kilometer used cars" at low prices and then claim government subsidies for trade-ins, undermining the original intent of the subsidy policies [5]. Group 2: Market Dynamics - The return of exported vehicles due to saturated overseas markets is impacting domestic pricing structures, leading to reduced profits for traditional used car dealers and fostering unhealthy competition [5]. - The phenomenon of "zero-kilometer used cars" reflects a broader issue of price wars and capital pressures within the automotive industry, necessitating regulatory intervention [10]. Group 3: Industry Responses - Some industry insiders suggest that the existence of "zero-kilometer used cars" is a result of mutual agreements between manufacturers and dealers, where both parties benefit from the arrangement [6][8]. - The market is witnessing a shift, with some used car dealers beginning to sell new cars, raising questions about how the regulation of "zero-kilometer used cars" will affect their operations [10].

Core Viewpoint - The phenomenon of "zero-kilometer used cars" has gained attention due to the comments made by Great Wall Motors Chairman Wei Jianjun, highlighting the need for regulatory intervention in the automotive industry [1][2]. Group 1: Industry Issues - The "zero-kilometer used car" refers to vehicles that have completed registration but have very low or zero mileage, creating a misleading classification in the used car market [1]. - The emergence of "zero-kilometer used cars" is attributed to intense competition in the automotive market, where manufacturers incentivize dealers to clear inventory, leading to the registration of new cars as used cars to meet sales targets [1][2]. Group 2: Market Dynamics - The "zero-kilometer used car" phenomenon is not limited to the domestic market but has also entered the export market, where profit margins are higher and can help alleviate domestic inventory issues [2]. - Hundreds of qualified used car export companies have emerged in China, sourcing vehicles primarily from domestic dealers and some new energy vehicle manufacturers [2]. Group 3: Risks and Concerns - The practice of selling "zero-kilometer used cars" poses risks of circumventing subsidy policies, as some dealers exploit vehicle replacement subsidy rules to gain financial benefits [2]. - Consumers may face potential issues regarding their rights, as purchasing a "zero-kilometer used car" may result in the loss of exclusive benefits associated with being the first owner, such as lifetime warranties [2].