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]