GreenergyDaily
Jul. 26, 2025
A tactic used by Chinese automakers and dealers to inflate car sales has grown increasingly common in recent years in response to a bruising price war in the world's largest auto market, a Reuters analysis of consumer complaints has found.
Earlier this month, Reuters reported EV brands Neta and Zeekr had arranged for cars to be insured before buyers purchased them, a scheme that effectively inflates sales numbers and gives the appearance the companies were hitting periodic targets.
But the controversial tactic was not limited to the two companies and was employed elsewhere in the industry, according to a Reuters review of 97 separate consumer complaints published on three widely used Chinese websites.
The allegations cover some of China's largest domestic and foreign brands by sales volume, including homegrown champion BYD and Toyota, Volkswagen and Buick. The three foreign brands operate their China businesses in partnerships with state-owned giants GAC and SAIC Motor Group.
While the earliest complaints date back to 2021, the majority were published this year and last as a price war squeezed an industry crucial to China's export-driven economy.
Reuters reviewed complaints posted on 12365auto.com, a third-party site used for consumer dispute resolutions, and two other similar sites. The platforms require owners to verify their identity and submit proof of their allegations.
In most of the cases reviewed, the automakers responded publicly, saying they sought to resolve problems.
Separately, Reuters identified 29 official media reports from 2020 to 2025 that detailed complaints against dealers of major brands, including BYD and Changan and foreign brands Volkswagen, GM, Toyota, Nissan and Honda, run by their joint ventures with state-owned Chinese automakers.
Reuters also identified five articles published by Chinese courts between March 2023 and March 2025 about consumers taking dealers to court for concealing pre-purchase car insurance. In three of those, the court ruled for the buyers who demanded compensation. Verdicts for the other two were not publicised.
