Chinese EV Brands Zeekr, Neta Inflated Sales Using Insurance Scheme

Chinese electric vehicle (EV) brands Neta and Zeekr artificially inflated their sales figures in recent years to meet aggressive targets, according to internal documents and interviews with car dealers and buyers, Reuters reported.

Zeekr, a premium EV brand owned by Geely, reportedly used the same method in late 2024 through its primary dealer in Xiamen. I Photo: Zeekr

The documents reviewed show that both companies arranged for vehicles to be insured before being sold to consumers, allowing them to count the units as "sold" under Chinese industry registration rules.

This practice enabled them to report stronger monthly and quarterly results.

According to data analyzed by Reuters, Neta used this method to prematurely book sales of at least 64,719 vehicles between January 2023 and March 2024—more than half of the 117,000 vehicles it reported sold during that period.

Zeekr, a premium EV brand owned by Geely, reportedly used the same method in late 2024 through its primary dealer in Xiamen, a state-owned company called Xiamen C&D Automobile, according to supporting documents, sales receipts, and interviews.

These units, referred to in the Chinese auto industry as “zero-mileage used cars,” have not actually reached customers at the time of reporting.

The practice has emerged amid intense competition in the world’s largest auto market, which is grappling with overcapacity and a prolonged price war. The Chinese central government has since raised concerns.

State media have publicly criticized the practice, and the cabinet has pledged to regulate “irrational” competition. Several government agencies are now convening with major automakers to address the issue.