Mileage cars are sold overseas under the guise of those used to improve GDP sales and growth statistics.
In China, a scandal exploded around so -called “used” cars export schemes, which is actually completely new and unused. As Reuters found out, Chinese automakers, with the support of local authorities, have registered new cars with zero mileage for many years used and sent them to Russia, Central Asia and the Middle East.
The purpose of these actions is to show the growth of sales and get rid of excessive machines that cannot be sold in the domestic market due to a war -war war.
“This is the result of four -dumping, forcing the company to go to any steps to fix sales,” expert Tu Le from the consulting company that auto views.
Once the car leaves the conveyor, it receives registration documents in China, is immediately assigned as used and sent for export. At the same time, the car manufacturer adjusts the sale and income, and local authorities – the growth of economic indicators.
This training is supported by at least 20 local governments, including the provinces of Guangdun and Sichuan. They provide special export licenses, speed up VAT refund, develop infrastructure and finances exhibitions to encourage this type of export.
According to analysts, more than 90% of the 436 thousand “used” cars exported by China in 2024 was really new. These are the main fuel models that are no longer required in China, though among them are electrical cars obtained for state subsidies.
This export method gives you to double the volume of transaction (sale from manufacturer’s dealer + exporting), which positively affects regional GDP. But this tactic brings more and more criticism.
“How many sales are real, and how much a fiction is, no one knows,” comments sang to Leo from the autoxing consulting company.
Despite growing fears about reputation and economic risks, state support for such skills has been preserved, as it helps regions fulfill economic plans established by Beijing.
Reminding, earlier it was reported that cars with zero mileage appeared in the second Chinese market.
Chinese car entrepreneurs ask manufacturers to reduce supply
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.