Zeekr, Neta Face Backlash Over $65,000 Zero-Mileage EV Scandal

- Zeekr and Neta face accusations of inflating sales data by misclassifying unsold vehicles. - Regulators and state media step up scrutiny as public criticism mounts. Chinese electric vehicle (EV) manufacturers Zeekr and Neta face scrutiny for allegedly inflating their sales figures. The companies stand accused of questionable practices, including insuring vehicles as sold before delivering them to customers. On July 19, 2025, a Reuters investigation revealed this tactic allowed the companies to classify cars as sold under industry guidelines. This artificially boosted sales numbers, helping them meet ambitious targets in a highly competitive market and prompting backlash from consumers, regulatory bodies, and state media. According to the Reuters report, Neta booked at least 64,719 vehicles as sales between January 2023 and March 2024 without transferring them to customers. This number accounts for more than half of the 117,000 units Neta claimed during this period. The report also accused Zeekr, a premium brand under Geely, of using the same tactic. In December 2024, Zeekr logged 2,737 units sold in Xiamen, which is 14 times its usual monthly average. However, local vehicle registration data showed officials licensed only 271 cars. These discrepancies have raised red flags across the EV industry. State media have been vocal in their criticism. On July 19, the *China Securities Journal* accused Zeekr of insuring showroom vehicles and labeling them as retail sales. This practice has reportedly frustrated consumers, with complaints about deception and delayed refunds adding to the controversy. That same day, *People's Daily*, the official mouthpiece of the Communist Party, published a scathing editorial condemning these practices as harmful to both buyers and the industry’s credibility. On July 20, Zeekr posted an official statement on Weibo, arguing that insured showroom vehicles legally remain classified as "new" when sold and promising an internal investigation. However, Zeekr did not clarify if it improperly included these cars in its sales data. Meanwhile, Neta has made no public statements on the allegations. Neta's silence comes as the company faces significant financial struggles, with its parent company, Zhejiang Hozon New Energy Automobile, having filed for bankruptcy in June. Regulators are moving to address the issue directly. According to a July 19 report from the industry publication *Auto Review*, the Ministry of Industry and Information Technology (MIIT) considered a policy to ban reselling new cars within six months of registration. However, the publication issued a correction on July 21, clarifying that the ministry would not implement a blanket ban. Instead, the MIIT will work with other regulatory bodies to target and regulate the "zero-mileage used car" loophole. In response, major automotive players like BYD and Chery have reportedly taken a proactive stance, moving to enforce stricter dealer accountability for these violations. As the industry grapples with the fallout, the controversy highlights the intense pressure on EV makers to meet sales expectations in China’s booming but crowded market.