Exclusive Chinese regulator calls on automakers to discuss “zero password” used car sales
Shanghai (Reuters) – China’s Ministry of Commerce will meet industry agencies and automakers including Byd and Dongfeng Motor to discuss sales of “used cars” that have never been driven. The person said the meeting was scheduled on Tuesday afternoon and he did not want to be named because the details of the meeting were confidential.
This comes last week when Big Auto Chairman Wei Jianjun said in an interview with Sina Finance that the phenomenon is called “used car zero mileage” due to the emergence of the Chinese market in the industry’s multi-year price war.
The phenomenon, he said, involves cars that have registered and license plates – marked for sale – but never sold on the used market. Wei said at least 3,000 to 4,000 suppliers are selling such cars on China’s used car platforms.
The strategy is seen as a potential way for automakers and dealers in the industry to support new car sales when trying to achieve positive sales goals, sources said.
According to the person, other participants in the invitation conference include the China Automobile Manufacturers Association (CAAM), the China Automobile Dealers Association (CADA), and some used cars trading platforms. The Ministry of Commerce, BYD, Dongfeng Motor and Cada did not immediately respond to requests for comment. Great Wall and CAAM declined to comment.
Chinese automakers’ stock and leapmotor extended losses after the Reuters report meeting, both of which fell 3.1%. Hong Kong’s Hang Seng Automobile index fell by more than 2%.
(Reports from the Shanghai and Beijing News Editorial Offices; Editors of Clarence Fernandez and Kate Maybury)
