China's Grey Market Revolution: The Zero-Mileage Car Conundrum

China's auto industry inflates sales by exporting 'zero-mileage' cars—new vehicles listed as used—to markets like Russia and the Middle East. This practice, supported by local governments to boost economic growth, disguises domestic oversupply and spurs criticism over alleged dumping and market distortion abroad.

The Chinese auto industry has been inflating its sales figures for years by exporting ‘zero-mileage' cars, which are essentially new vehicles registered as used, to regions like Russia, Central Asia, and the Middle East.

This strategy, supported by local governments to meet economic targets, is drawing significant criticism as it not only disguises domestic overproduction but also raises concerns about potential automotive dumping.

With the export of these zero-mileage cars becoming more prominent, both industry insiders and overseas markets are wary of the long-term repercussions on brand integrity and international trade dynamics.