Chinese automakers are inflating car sales figures by pre-insuring vehicles, according to a Reuters analysis of consumer complaints. BYD, Toyota, VW, Buick are
A recent Reuters analysis has uncovered a concerning trend in China's auto market: automakers and dealers are reportedly inflating car sales figures amidst an intense price war.
The tactic involves insuring vehicles before they are actually purchased by consumers. This creates a misleading impression of sales targets being achieved.
Earlier reports highlighted EV brands Neta and Zeekr, but the practice appears to be more widespread. Consumer complaints indicate involvement from major domestic and foreign brands, including:
Numerous consumer complaints detail dealerships admitting that pre-insuring vehicles is specifically designed to meet sales quotas.
While the exact impact on overall sales remains unclear, experts warn this practice can misrepresent actual demand, potentially leading to errors in production scheduling. Buyers have expressed feeling deceived upon discovering pre-existing insurance policies registered under different names.