Nezha Auto was exposed to inflated sales. Dealer: The manufacturer said others were doing this

Nezha Automobile has achieved aggressive sales targets by falsely reporting sales in recent years, with the falsely reported sales exceeding 60,000 vehicles. According to reports, Nezha Automobile insured the commercial vehicles before selling them to buyers.Manufacturers record these cars as sales in advance to achieve monthly and quarterly sales targets. These vehicles are also called "zero-kilometer used cars."

According to a copy of the records sent by Nezha to dealers, from January 2023 to March 2024,Nezha recorded sales of at least 64,719 vehicles in advance in this way, accounting for more than half of the 117,000 sales it reported during the 15 months.

The records contain details about each vehicle and the policy purchased, and also list the name of the insurance agent. After the dealer finds a buyer, they can use this information to transfer the policy to the new owner. Nezha recorded a total of 64,719 vehicles as sales in advance through this method.

Nezha dealers revealed to the media: "Nezha Auto clearly informed dealers that these vehicles have been insured in advance, so they are counted as sold vehicles. We have to explain to car buyers that the compulsory traffic insurance is a bonus insurance, and remind them that the insurance will expire early and they need to renew it in time."

Another dealer said that Nezha will adopt this approach from the end of 2022 to obtain new energy vehicle purchase subsidies that will end that year.

Many "zero-kilometer second-hand cars" provided by Nezha are still stranded in his warehouse and have not been sold.Nezha only had one attitude at the time: "Just do it, everyone else is doing it."

Data shows that Nezha Automobile's sales reached its peak in 2022, with annual sales of 152,000 vehicles, winning the top sales among new forces that year; however, Nezha went into decline after the lawsuit, with sales in the first quarter of this year just over 1,000.

Moreover, Nezha Auto is now on the verge of bankruptcy. The bankruptcy and reorganization case of Hezhong New Energy, the parent company of Nezha Auto, was accepted by the court on June 12, marking Nezha's entry into the judicial reorganization stage.