China's 'Zero Mileage' Car Market Controversy:

China's commerce ministry is convening industry players to address 'used cars' in the market that were never driven due to a pricing war. These 'secondhand cars with zero mileage' are sold as a strategy to boost new car sales. Automakers and various industry associations are involved.

China's commerce ministry is set to convene a crucial meeting with industry stakeholders, including automotive giants BYD and Dongfeng Motor, to discuss the sale of 'used cars' that have never hit the road, according to insider sources.

The meeting, scheduled for Tuesday afternoon, follows recent revelations by Great Wall Motor's Chairman Wei Jianjun. He illuminated the emergence of 'secondhand cars with zero mileage' in the Chinese market, a byproduct of the sector's prolonged pricing war.

The phenomenon sees cars being registered, adorned with license plates, but not actually driven, subsequently sold in the secondhand market. This approach, used by at least 3,000 to 4,000 vendors, is a strategic maneuver by automakers and dealers to meet ambitious sales goals. The meeting will also host associations like the China Association of Automobile Manufacturers (CAAM) and trading platforms, though many parties, including CAAM and Great Wall Motor, have declined to comment.

(With inputs from agencies.)