Core Viewpoint - The emergence of the "0-kilometer used car" market in China reflects a significant issue within the automotive industry, where new cars are being sold as used cars to manage inventory and sales targets, leading to a complex interplay of market behaviors and pricing strategies [3][5][9]. Group 1: Market Dynamics - The "0-kilometer used car" phenomenon is characterized by vehicles that are essentially new but are sold as used, often with very low mileage, to meet sales quotas and manage inventory [3][5]. - Major automotive brands and dealerships are involved in this practice, with estimates suggesting that "0-kilometer used cars" may account for 5% to 8% of the total used car market [7][9]. - The pricing of these vehicles can be significantly lower than new cars, often by 20% to 30%, making them attractive to consumers seeking new car quality at reduced prices [5][8]. Group 2: Sources of "0-Kilometer Used Cars" - The primary sources of "0-kilometer used cars" include manufacturer resource vehicles sold to large clients, dealer "volume cars" that are registered but not driven, and "cancellation cars" from direct sales models of new energy vehicle companies [7][8][9]. - Many of these vehicles are sold at prices 15% to 25% lower than those from official channels, indicating a substantial discount for consumers [7][8]. - The practice of registering vehicles as sold without actual consumer use is a strategy employed by dealerships to meet sales targets and avoid financial losses [11][12]. Group 3: Legal and Compliance Issues - The legality of "0-kilometer used car" transactions is under scrutiny, particularly regarding compliance with regulations related to subsidies for new energy vehicles [18][19]. - There are concerns about misleading advertising practices, where sellers may misrepresent the condition and history of these vehicles to consumers [19]. - The phenomenon raises questions about market competition and the potential for regulatory intervention to ensure fair practices within the automotive industry [18][21]. Group 4: Industry Implications - The rise of "0-kilometer used cars" highlights a structural imbalance in the new car market, where oversupply leads to aggressive pricing strategies and inventory management tactics [9][21]. - Experts suggest that manufacturers need to optimize production strategies to align supply with actual market demand, rather than relying on price wars and inventory dumping [21]. - The export of "0-kilometer used cars" to international markets, particularly in Central Asia, has created a new revenue stream but also poses risks to brand reputation and market positioning for domestic manufacturers [14][17].