China’s auto industry has inflated car sales for years through a burgeoning government-backed grey market that registers new cars right off the assembly line and then ships them overseas as “used” vehicles.

These so-called “zero-mileage” cars have never been driven but they are being exported as used to markets like Russia, Central Asia and the Middle East, allowing Chinese automakers to show growth and to dispose of cars that it would be difficult to sell domestically, according to a Reuters review of government documents and interviews with five auto dealers and car traders.

“This is the outcome of an almost-four-year price war that has made companies desperate to book any sales possible,” said Tu Le, Michigan-based founder of consultancy Sino Auto Insights.

  • xenomor@lemmy.world
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    14 hours ago

    “Inflated car sales” aka ‘sold more product’

    “Dispose of cars” aka ‘sold internationally’

    “Price war” aka ‘free market’

    • Narri N.@lemmy.ml
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      11 hours ago

      I love it, the capitalists can’t win even in their own game!

    • catloaf@lemm.ee
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      13 hours ago

      Production is subsidized by the government, so it’s not a free market.

      • xenomor@lemmy.world
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        11 hours ago

        What absolute nonsense. It’s a free market, the unsubsidized companies are just at a market disadvantage. You’re just whining about the competition working together to compete better.