Overview

• The industry ministry is set to prohibit cars from being resold within six months of registration to discourage early booking through insurance
• Neta Auto insured at least 64,719 vehicles before actual delivery between January 2023 and March 2024, representing over half of its reported sales
• Zeekr used a similar pre-sale insurance registration scheme via its Xiamen C&D dealer in late 2024, prompting state media to name the brand
• Geely and its Zeekr subsidiary have publicly denied wrongdoing and launched internal inquiries into the insurance-first booking allegations
• Buyers in Guangzhou and Chongqing have discovered their cars were pre-insured and are pursuing refunds after feeling misled