China's auto industry has inflated car sales for years through a government-backed grey market that registers new vehicles directly off the assembly line and exports them overseas as 'used' cars. This practice, promoted by local Chinese governments, has artificially boosted sales and growth figures in the world's largest auto market. The tactic involves insuring new cars before they are sold to customers, allowing automakers and dealers to meet sales targets amid intense price competition. Consumer complaints have highlighted widespread padding of car sales figures as this method has become increasingly common in recent years. In response, Chinese authorities have announced plans to crack down on zero-mileage used car sales to address these distortions in the market.