Chinese electric vehicle brands Neta and Zeekr inflated sales by booking early sales through insurance policies before cars were sold to buyers. Neta booked at least 64,719 cars using this method, while Zeekr used a similar approach to boost sales in late 2024. The industry now faces scrutiny and potential regulation due to these practices.

State media has highlighted the issue, with Zeekr named for selling cars with pre-purchased insurance policies. Buyers reported feeling deceived, with anomalies in sales figures raising questions about both Zeekr and Neta. The China Securities Journal reported on these irregularities and lack of transparency in the industry.

Analysts and investors track China’s auto industry with wholesale and retail sales data. The industry now faces a moment of reckoning as the Chinese government plans to regulate and clamp down on the practice of booking early sales. Dealers and buyers may face pressure to conform to more reasonable and transparent practices in the future.

Read more at Yahoo Finance: Exclusive-China EV brands Zeekr, Neta inflated car sales using insurance scheme