Core Viewpoint - The emergence of "zero-kilometer used cars" has raised significant concerns in the automotive industry, highlighting issues of regulatory loopholes and potential risks for consumers [1][2]. Group 1: Industry Insights - The term "zero-kilometer used cars" has been criticized by industry leaders, with the chairman of Great Wall Motors labeling it a "cancer" in the industry [1]. - Data from the China Automobile Circulation Association indicates that in 2024, vehicles with a registration date of less than or equal to 3 months and mileage of less than or equal to 50 kilometers account for 12.7% of the used car market, with over 60% being new energy vehicles [1]. - Some car dealers exploit regulatory ambiguities by exporting newly registered cars as used cars, circumventing import/export controls and high tariffs [1]. Group 2: Consumer Risks - Consumers may perceive "zero-kilometer used cars" as a bargain, but these vehicles often lack comprehensive warranties for critical components, leading to potential high repair costs if issues arise [2][3]. - Regulatory bodies are responding to the proliferation of "zero-kilometer used cars" by implementing measures such as enhancing oversight, establishing credit evaluation systems, and proposing policies to prevent the transfer of new cars to used car status within six months of registration [3].

Core Viewpoint - The phenomenon of "zero-kilometer used cars" is gaining attention in the market, where vehicles are sold at prices significantly lower than new cars, raising concerns about market dynamics and consumer protection [1][2]. Group 1: Market Dynamics - The circulation of "zero-kilometer used cars" is increasing, with 12.7% of the used car market consisting of vehicles registered for less than 3 months and having mileage under 50 kilometers, indicating a significant impact on new car sales and pricing structures [2]. - The presence of these vehicles is expected to disrupt the profit margins of new car retailers, leading to a potential decline in new car sales and increased pressure on manufacturers to adopt aggressive market strategies [2][4]. Group 2: Consumer Risks - Consumers purchasing "zero-kilometer used cars" may face hidden risks, including the loss of warranty rights, as many manufacturers only provide warranty coverage to the first owner, which could lead to high repair costs for subsequent owners [3]. - The export of "zero-kilometer used cars" to overseas markets has raised concerns about anti-dumping allegations and potential tariffs, posing a threat to the reputation and interests of Chinese automotive manufacturers [3]. Group 3: Regulatory Response - The industry is experiencing a push for regulatory measures to address the "zero-kilometer used car" phenomenon, with the Ministry of Commerce and the China Automotive Industry Association advocating for fair competition and the cessation of price wars [4][5]. - Initiatives are being implemented to promote healthy market practices, including enhancing product consistency checks and enforcing regulations against unfair competition, aimed at fostering a sustainable automotive industry [4][5].

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 emergence of "zero-kilometer used cars" in the Chinese automotive market is a response to inventory pressure and sales targets faced by manufacturers and dealers, leading to significant price reductions in the second-hand car market [2][3][24]. Group 1: Definition and Characteristics - "Zero-kilometer used cars" refer to vehicles that have completed registration but have extremely low mileage, often less than 100 kilometers, making them almost new [2][21]. - These vehicles are typically sold by manufacturers directly to used car dealerships, which then resell them to consumers [6][12]. Group 2: Market Dynamics - The current market for "zero-kilometer used cars" is driven by a price war and an imbalance in supply and demand, with these cars serving as a "release valve" for manufacturers and dealers to manage excess inventory [3][24]. - The sales volume of "zero-kilometer used cars" is estimated to account for 5%-10% of the total used car market, translating to approximately 1-2 million units based on projected total used car transactions in 2024 [21][24]. Group 3: Sources and Distribution - The sources of "zero-kilometer used cars" include excess inventory from 4S dealerships, vehicles from rental companies, and those produced to exploit subsidy loopholes [14][15]. - Many used car dealers find it challenging to access these vehicles directly from manufacturers, often relying on established relationships or group purchases to acquire them [15][16]. Group 4: Market Impact - The rise of "zero-kilometer used cars" is expected to intensify competition in the used car market, particularly affecting the sales of "quasi-new cars" [27][28]. - The phenomenon may lead to a decline in the perceived value of traditional used cars, as consumers may prefer the nearly new condition of "zero-kilometer used cars" at similar price points [28][29]. Group 5: Regulatory Considerations - Experts suggest that the lack of regulatory measures for "zero-kilometer used cars" could lead to potential market manipulation, and there are calls for improved oversight from government bodies [32][33]. - Recent discussions among industry stakeholders, including the Ministry of Commerce, aim to address the implications of "zero-kilometer used cars" on the market [33].

Core Viewpoint - The article discusses the rise and fall of "parallel exports" of Chinese cars, highlighting the shift from a booming market to a challenging environment due to increased competition and regulatory changes [1][6]. Group 1: Market Dynamics - The parallel export market for Chinese cars saw significant growth, particularly during the period from 2022 to mid-2023, driven by the demand created by the absence of major international car manufacturers in Russia due to the Ukraine conflict [2][5]. - The influx of new players into the market led to increased competition, resulting in profit margins being squeezed from several thousand dollars per vehicle to just a few hundred yuan [5][6]. - By 2023, the export volume of Chinese used cars reached 275,000 units, a 294% increase year-on-year, with projections for 2024 exceeding 400,000 units [6]. Group 2: Regulatory Changes - Starting in the second half of 2023, Russia implemented restrictive measures that severely impacted the parallel export model, including a law requiring the payment of previously avoided taxes on vehicles imported through the Eurasian Economic Union [6][9]. - These regulatory changes forced exporters to shift their focus from the lucrative Russian market to smaller markets like Uzbekistan and Kazakhstan, which significantly reduced the potential for profit [6][9]. Group 3: Industry Transformation - Many players in the parallel export market are now seeking to transition to more sustainable business models, with some aiming to become authorized distributors for car manufacturers or shifting to parts supply and repair services [11]. - The article emphasizes the potential for pure used car exports to become a new growth area, as this segment requires specialized knowledge and offers less competition compared to new car exports [12][13]. - The market is expected to evolve from a price-driven model to one focused on service quality and professional expertise, providing opportunities for well-prepared teams to establish a foothold [12].

Core Viewpoint - The concept of "zero-kilometer used cars" serves specific needs in the automotive industry, acting as a bridge for domestic manufacturers to alleviate inventory pressure and expand into international markets [2][3]. Group 1: Zero-Kilometer Used Cars - Zero-kilometer used cars are essentially new cars that are registered in China and exported as used cars, allowing manufacturers to navigate inventory challenges [3][4]. - Since the initiation of used car exports in China in 2019, zero-kilometer used cars have played a significant role, accounting for a considerable portion of the total used car export volume [3][4]. - The growth of zero-kilometer used car exports has been notable, with exports increasing from approximately 1.5 million units in 2021 to 27.5 million units in 2023, and projected to reach 43.6 million units in 2024 [4]. Group 2: Industry Perspectives - The automotive industry exhibits mixed attitudes towards zero-kilometer used cars, with some manufacturers criticizing their impact on brand integrity while others see them as a market opportunity [5][6]. - Some industry experts argue that zero-kilometer used cars are a necessary market product that should not be overly restricted, as they help alleviate domestic market pressures [6][8]. - The debate continues regarding the balance between supporting zero-kilometer used car exports and protecting established brands that have invested in overseas market development [8][9]. Group 3: Future of Used Car Exports - The future of used car exports in China is expected to evolve, with long-kilometer used cars gaining competitiveness as domestic prices decline and international demand increases [14][15]. - The transition from zero-kilometer to long-kilometer used cars is anticipated, as the latter is expected to dominate the market in the coming years due to improved pricing and brand recognition [14][15]. - The overall strategy for Chinese automotive brands includes leveraging the existing supply chain for both new and used cars, enhancing their competitiveness in international markets [15].

Core Viewpoint - The emergence of "zero-kilometer used cars" has sparked controversy in the automotive industry, with some viewing it as a beneficial option for consumers while others see it as a market anomaly driven by excess inventory and sales manipulation [2][19]. Group 1: Industry Dynamics - A chairman of a domestic car company labeled zero-kilometer used cars as an "industry chaos," claiming they are not genuine used cars but rather new cars sold to dealers to improve sales figures [2][4]. - The zero-kilometer used car phenomenon is linked to high inventory levels among car manufacturers, with dealers facing pressure to sell vehicles quickly to avoid losses and secure rebates from manufacturers [8][9]. - The China Automobile Dealers Association reported that the inventory coefficient for car dealers remained above 1.4, indicating ongoing inventory challenges in the industry [8]. Group 2: Consumer Perspective - Consumers generally view zero-kilometer used cars positively, as they offer the opportunity to purchase nearly new vehicles at lower prices compared to traditional new cars [2][4]. - Examples of significant price reductions for zero-kilometer used cars were provided, showing savings of nearly 10,000 yuan or more compared to new car prices from dealerships [4]. - The existence of zero-kilometer used cars allows consumers to benefit from lower prices while still obtaining vehicles that are effectively new [19]. Group 3: Market Implications - The practice of selling zero-kilometer used cars may distort sales data reported by manufacturers, leading to inaccuracies in production planning and market strategy [19][20]. - Industry experts suggest that the zero-kilometer used car market could lead to consumer protection disputes if dealers do not transparently disclose the nature of these vehicles [20]. - The phenomenon raises concerns about the long-term health of the automotive market, as it may encourage unsustainable practices among manufacturers and dealers [21]. Group 4: Recommendations and Solutions - To address the underlying issues leading to the rise of zero-kilometer used cars, manufacturers should optimize production strategies to better align supply with demand, thereby reducing excess inventory [21]. - Experts recommend enhancing the profitability and service levels of existing sales channels rather than relying on aggressive discounting and inventory-clearing tactics [21].

Core Viewpoint - The Chinese automotive market is experiencing severe supply-demand imbalance and negative effects from price wars, leading to distorted business practices among listed car companies [2][4][12]. Group 1: Market Dynamics - The average sales growth rate in China's domestic automotive market over the past three years is only 1.8%, with profit margins continuously declining [4][11]. - The phenomenon of "0-kilometer used cars" has emerged, where new cars are registered and then sold as used cars to alleviate inventory pressure and meet sales targets [6][9]. - The automotive industry is facing a significant overcapacity issue, with many listed companies reporting utilization rates below 50% [13][25]. Group 2: Industry Practices - Some car manufacturers and dealers engage in practices such as "virtual invoicing" to obtain subsidies, contributing to a culture of financial manipulation [6][9]. - The trend of selling "pseudo-used cars" at steep discounts (up to 30% off) is prevalent, indicating a hidden price war within the industry [7][9]. - The competitive landscape has led to a "winner-takes-all" scenario, forcing traditional automakers to downsize and restructure [15][16]. Group 3: Regulatory Response - The Ministry of Commerce has initiated discussions with major car manufacturers regarding the "0-kilometer used car" issue and is working to regulate market practices [4][22]. - There is a call for stricter regulations to address the ongoing price wars and restore healthy competition in the automotive sector [22][26]. - The government is promoting initiatives like the "2025 New Energy Vehicles Going to the Countryside" program to stimulate demand and help manufacturers reduce inventory [26][27]. Group 4: Future Outlook - The automotive industry is expected to undergo a "淘汰赛" (elimination race) in the second half of the year, which may further impact weaker companies [16]. - Despite the challenges, there are potential benefits from government initiatives aimed at boosting sales of new energy vehicles [26]. - The overall production capacity in China may exceed 50 million units, while the global automotive production is around 90 million units, highlighting a significant structural overcapacity [23][25].

Group 1: Market Overview - The domestic consumer market for "zero-kilometer used cars" is estimated to have a transaction volume of approximately 218,400 to 610,500 vehicles [3] - The national used car market transaction volume is projected to reach 1.964 million units in 2024, with the potential for "zero-kilometer used cars" to reach a scale of up to 1 million units by 2025 [3] Group 2: Export Opportunities - Used car exporters benefit from lower tariffs on some overseas used cars compared to new cars, leading to reduced export costs [3] - In certain overseas markets, the selling price of used cars is generally higher, which may result in used car prices exceeding those of new cars domestically [3] Group 3: Consumer Considerations - Despite price reductions, consumers should be aware of hidden costs associated with "zero-kilometer" vehicles, such as potential battery depletion and rubber aging due to prolonged storage [7] - Maintenance costs may increase as these vehicles do not enjoy the benefits of being the "first owner," affecting repair and insurance aspects [7]

Core Viewpoint - The phenomenon of "zero-kilometer used cars" is rampant, and its negative impact should not be underestimated. This sales model helps car manufacturers reduce inventory but compresses profit margins and exacerbates losses, hindering product quality improvement and innovation resource investment [1] Industry Analysis - The prevalence of "zero-kilometer used cars" is essentially a continuation of price wars in the automotive market, reflecting a "involutionary" vicious competition within the industry [1] - Addressing these issues requires collective efforts, strong governance, and the establishment of regulatory frameworks to guide the industry towards self-discipline, ultimately fostering a healthy market order and promoting high-quality development in the automotive sector [1]