Chinese electric-vehicle makers Neta and Zeekr artificially boosted reported sales by insuring cars before they reached customers, according to documents and interviews reviewed by Reuters. Neta used the tactic for more than 64,000 vehicles—over half its deliveries between January 2023 and March 2024—while Zeekr employed a similar scheme through a state-owned dealer network in Xiamen late last year. The practice, known locally as selling “zero-mileage used cars,” lets manufacturers meet ambitious volume targets but can leave buyers holding policies that are already months old. The revelations come as Beijing signals a crackdown on the practice. Industry-ministry officials are weighing a rule that would bar the resale of vehicles within six months of initial registration, and state media have stepped up criticism of what they call “irrational” competition in the world’s largest auto market. Geely Auto shares, which are being used to take Zeekr private, fell as much as 4% in Hong Kong trading after the reports. Weakening demand for battery cars is reverberating beyond China. In the United States, Mercedes-Benz has cut 2026-model-year prices on its EQE and EQS sedans and SUVs by as much as 16.5%, or $15,300, and will suspend production of those models for the U.S. market from 1 September. Tesla, meanwhile, has rolled out a package of discounts, 0% financing on selected models and free software upgrades after its global deliveries fell 14% in the second quarter.