China Auto Body Corrects Report on Planned Ban of Zero-Mileage Used Cars
A top auto industry publication in China has corrected its report about a supposed government plan to ban the resale of cars within six months of initial registration. The clarification came after its earlier report sparked confusion across the industry.
Industry Group Admits Reporting Error
Auto Review, the official media outlet of the China Association of Automobile Manufacturers (CAAM), admitted its earlier report was inaccurate. The article had wrongly suggested that China’s Ministry of Industry and Information Technology (MIIT) was planning a direct ban on early car resales. In a statement to Reuters, Auto Review said its article contained “inaccurate descriptions related to the MIIT and other relevant authorities concerning zero-mileage used cars.”
These errors have since been corrected, and the incorrect statements removed from the publication. The revised article now says MIIT plans to “regulate the zero-mileage used cars together with relevant departments and manage the issue from its source.”
Original Report Linked to New Regulation Rumours
On Saturday, Auto Review had reported that MIIT would introduce a six-month resale ban. This move, it said, would tackle the widespread sale of zero-mileage used cars. These are cars registered but unsold, helping dealers hit sales targets. This practice has grown due to intense competition and overcapacity in China’s massive auto market.
The corrected article also updated details about the China Automobile Dealers Association. While the original report said the association proposed a code system for used car exports, it now states the group suggested setting up a relevant mechanism, though details remain unclear.
China Automakers Target Dealer Violations
One part of the original report, however, was left unchanged. Auto Review maintained that carmakers like Chery and BYD plan to hold dealers accountable for certain practices. These include licensing vehicles before actual sales, a method used to inflate official sales numbers.
Zero-mileage used cars remain a concern in China, where aggressive price wars continue to disrupt the auto industry. Last month, a Communist Party newspaper criticised the practice. Additionally, China’s cabinet pledged tighter control over “irrational” competition in the domestic electric vehicle sector.
with inputs from Reuters