China’s state news agency warns automakers are inflating pre-sale orders, misleading consumers and investors. The Xinhua Daily Telegraph alleges some automakers used employees to create false performance. Orders lack oversight and far exceed actual deliveries, sparking industry alarm. China’s industry ministry cracking down on false marketing in auto sector.

Order padding criticized by Economic Daily, harming production and sales matching. Nio CEO William Li denounces the practice, stating his company does not inflate numbers. Sales inflation tactics include shipping new cars overseas as used and using insurance to boost sales. Rooted in China’s oversupply of cars due to production-oriented model.

China’s car sales grew by 9.9% to 14.9 million units in the first eight months of 2025. China Passenger Car Association notes China accounted for 38% of global car sales in August due to government subsidies. Unusual practices in Chinese auto industry tied to oversupply issue. Industry policy created imbalance in supply and demand.

Read more at Yahoo Finance: Chinese state media criticise some automakers for inflating car order numbers