Shanghai (Reuters) – China’s industry ministry plans to ban car resale within six months of its initial registration as part of an effort to crack down on selling so-called Zero Mira used cars, reported on Saturday.
Zero Mileage used cars appear in China due to the unique victorious competition in the world’s largest auto market sales, which is due to the long-term cruel price war caused by productivity.
This practice involves insurance for the car before selling a new car, enabling automakers and their dealers to achieve sales goals.
But it can cause trouble for customers.
Auto Review, a publication conducted by the China Automobile Manufacturers Association, reported the program in an editorial published on its WeChat account. It said another industry group, China Automobile Dealers Association, proposed a code system for exporting used cars.
The editor added that Chiri and Bead are one of the companies that plan to put dealers responsible for violations, including licenseing the car before the sale.
These measures, if implemented, would mark the first policy action taken by the Chinese government to stop this practice, which became a national problem in May of the big city CEO Wei Jianjun.
Since then, the Chinese central government is preparing for a crackdown, from last month condemning Zero Midway Used Cars to the country’s cabinet promise that it will control “irrational” competition in the domestic auto industry.
(Reports from Beijing and Shanghai News Editorial Offices; Editors of Aidan Lewis and Joe Bavel)
