Chinese EV Scandal? Zeekr, Neta Accused Of Gaming Sales With Pre-Insured Cars

Chinese EV makers Neta and Zeekr reportedly inflated vehicle sales figures to meet aggressive targets. Both companies arranged for vehicles to be insured before actual sales, allowing them to count deliveries early under Chinese registration rules, Reuters reported, citing documents and interviews with dealers and buyers.

Neta reportedly used this method to book at least 64,719 cars from January 2023 to March 2024, which is over half of its reported sales in that period. Zeekr applied the same tactic in late 2024 via its main dealer in Xiamen.

The practice, known in China as selling "zero-mileage used cars," stems from intense competition and chronic overcapacity in the EV market. State media and regulators have since criticized the tactic, with China’s industry ministry reportedly planning a ban on the resale of newly registered cars within six months.

The China Securities Journal recently reported that some Zeekr buyers found their cars were already insured prior to purchase, and were denied refunds. Zeekr said Sunday on Weibo that the cars were insured for showroom display and still qualified as new. It did not confirm whether they were included in the retail sales count.

Neta reportedly began pre-insuring cars in late 2022 to qualify for expiring subsidies. Buyers said they weren’t informed that the traffic insurance had already started. Sales fell from 152,000 in 2022 to 87,948 in 2023, and just 1,215 in Q1 2025. Its parent, Zhejiang Hozon New Energy Automobile, entered bankruptcy proceedings last month.

Zeekr’s December 2024 sales in Xiamen surged to 2,737, with most vehicles sold to companies linked to its local dealer, Xiamen C&D. Only 271 vehicles were registered for license plates that month, according to city records.

Dealers reportedly said many cars remained unsold in warehouses, with Neta pressuring them to continue the practice. One dealer quoted the company as saying: “Just do it, everyone else is doing it.”

On Stocktwits, retail sentiment for Zeekr was ‘ bullish’ amid ‘low’ message volume late Sunday.

Zeekr’s stock has risen 10.9% so far in 2025.

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