China Proposes Six-Month Ban on Car Resales to Curb ’Zero-Mileage’ Fraud

China's Ministry of Industry and Information Technology is weighing a six-month embargo on reselling newly registered vehicles, targeting the widespread practice of 'zero-mileage used car' sales. The MOVE aims to halt automakers and dealers from artificially inflating sales figures by registering vehicles without actual transfers to buyers.

The proposed crackdown, first reported by Auto Review, marks Beijing's first concrete step to address the issue in its hypercompetitive auto market. Vehicles classified as 'used' despite never being driven have distorted sales data and insurance metrics for years.

Great Wall Motor CEO Wei Jianjun brought national attention to the scheme in May, with the Communist Party's People's Daily subsequently condemning the practice. The State Council has pledged tighter oversight of auto market reporting practices.