China uses trickery to sell cars to Uzbekistan – media

For years, the Chinese auto industry has been inflating car sales figures through a government-backed “gray market” scheme in which vehicles are registered as “new” at the factory but exported as “used” to foreign countries, including Uzbekistan. This was reported by "Reuters".

These so-called “zero-kilometer” cars are shipped as used vehicles to markets such as Central Asia, Russia, and the Middle East, despite never having been driven. According to government documents and interviews with five car dealers and brokers, this practice allows Chinese automakers to report inflated sales and offload vehicles that are difficult to sell domestically.

“This is the result of a price war that has been ongoing for almost four years. It forces companies to record sales by any means necessary,” said Tu Le, founder of Sino Auto Insights, a consulting firm based in Michigan, USA.

The issue drew more attention after the head of Great Wall Motor publicly criticized the domestic sale of “zero-mile” used cars in May.

On June 10, "People’s Daily", the official newspaper of the Chinese Communist Party, also condemned the practice, stating that these “fake used cars” were driving down domestic prices and fueling an unsustainable price war. The article called for “strict regulatory measures” to curb the issue.

Despite this criticism, state media and government documents reviewed by "Reuters" show that regional governments in China are actively encouraging the export of such “fake used” vehicles. Local authorities see this as a key tool to meet Beijing’s economic growth targets.

At least 20 regional governments, including major export hubs like Guangdong and Sichuan, have openly stated in official documents their support for the export of zero-kilometer used cars.

Support measures include issuing special export licenses, offering accelerated tax benefits, investing in export infrastructure, and funding industry-wide initiatives to promote the export of these vehicles.

The process works as follows: when a new car comes off the production line, an exporter purchases it from the manufacturer or dealer, registers it with a Chinese license plate, and immediately ships it abroad as a used car. For the manufacturer, this counts as a domestic sale, allowing them to record it as sold and book the revenue.

“Outside China’s centralized economic system, this may seem counterintuitive. But here, rapid growth in trade and job creation can lead to promotions for local leaders—or even dismissals if targets are not met,” the report noted.

According to two executives from China’s auto industry, local governments are eager to attract these businesses because each car is registered twice—once upon purchase and again upon export. This artificially boosts gross domestic product (GDP) figures at the regional level.