The Chinese auto industry is a bubble about to burst after years of artificially inflated sales and brutal price wars. The scheme involves registering new vehicles in China and then selling them abroad as used vehicles despite being essentially "zero-mileage" cars. This allows carmakers to report high sales numbers even though the market is on the brink of collapse.
Chinese carmakers are embroiled in a new scandal after reports of fake sales emerged. Recent investigations show that China's auto industry has inflated car sales for years under the forgiving eye of the Chinese government. One of the popular schemes involved registering the new cars right off the assembly lines and shipping them overseas as "used vehicles." This is how the "zero-mileage" cars became China's auto market's secret of Polichinelle.
Read Article