The Zero-Kilometer Phenomenon Exposed
China Securities Journal Investigation
China Securities Journal’s explosive report revealed Zeekr dealerships systematically registered vehicles under corporate accounts since May 2024 before selling them to consumers as ‘new cars’. 80+ buyers reported receiving cars with pre-existing insurance policies and registration records despite paying full price for new vehicles.
Consumer Financial Traps
Victims experienced multiple fraudulent practices:
– Third-party contracts instead of direct Zeekr agreements
– Forced forfeiture of deposits
– Payments routed to unauthorized accounts
– Documentation forgery
One customer waited 12 days for replacement after receiving a 2024 model advertised as 2025 production.
Suspicious Corporate Sales Spike
December 2024 sales patterns triggered alarms:
– Shenzhen sales soared 377.5% monthly
– Xiamen orders jumped 647.8%
– Corporate registrations dominated sales (86-90%)
CPC Provincial Co-creation Director Li Yanwei stated: ‘These patterns contradict normal automotive consumption behavior.’
Defining Zero-Kilometer Used Cars
Legal Distinctions
The controversy hinges on exhibit vehicles versus registered inventory:
| Category | Exhibit Vehicles | 0-Kilometer Used Cars |
|---|---|---|
| Ownership | Manufacturer/Dealer | Transferred to third party |
| Registration Status | Unregistered | Fully registered |
| Insurance Status | Optional showcase policy | Mandatory traffic insurance activated |
| Consumer Rights | First-owner benefits intact | Warranty limitations possible |
Zeekr’s Regulatory Dilemma
Though claiming exhibit vehicles constitute ‘new cars legally’, forced third-party transfers undermine this defense. Automakers face tightening regulations including China’s draft ‘6-month new car transfer ban’ preventing corporate flip schemes.
Corporate Motivations
Industry sources reveal three primary motivations for such practices:
1. Meeting quarterly sales targets
2. Qualifying for government EV subsidies
3. Influencing stock valuations before financial disclosures
Zeekr’s delisting announcement compounds confusion – with no apparent financial incentive, corporate strategy experts question why risk reputational damage for phantom sales.
Consumer Impact
Financial Consequences
Owners face tangible losses:
– Diminished resale value (multiple registered owners)
– Voided battery warranties
– Increased insurance premiums
– Loan complications from altered vehicle history
Legal Grey Areas
China’s automotive regulations lag behind marketplace tactics like corporate pre-registration. The China Consumer Association reports EV battery warranty claims face 47% rejection rates when ownership chains show anomalies.
Industry Response
After China Securities Journal’s publication, Zeekr emergency statement:
– Denied ‘0-kilometer used car’ sales
– Confirmed internal task force investigation
– Vowed ‘zero tolerance’ for consumer rights violations
Automotive analyst Mingming Li notes: This scandal arrives amidst Great Wall Motor Chairman Wei Jianjun’s (魏建军) industry-wide criticism of artificial sales inflation. Manufacturers transitioned to stricter dealer audit systems following Maruti Suzuki’s Indian dealership scandal.
Call for Transparency
Consumer advocacy groups urge:
– Mandatory disclosure of vehicle registration histories
– Standardized battery warranty transfer protocols
– Real-time industry sales verification systems
Proactive dealers now implement ‘digital vehicle passports’ recording every ownership transfer. Ultimately, genuine innovation—not sales manipulation—will determine success for China’s electric vehicle champions.