Understanding China’s EV Insurance-Driven Sales Surge
Merchandise sales should reflect real demand. So too vehicle sales. But in China, some EV makers including Zeekr and Neta reportedly surged their numbers using pre-purchased insurance policies to record “sales” before cars ever reached customers.
In Neta’s case, over 64,000 vehicles were counted as sold even though many were still in warehouses. Zeekr posted a 14x spike in December sales in one city with most cars never registered for plates.
When Sales Aren’t Sales
In China, insurance registration is often the first step in a vehicle’s life and an easy way to book a “sale” on paper.
Neta used this method to account for over half its reported sales (Jan 2023–Mar 2024).
Customers later discovered their “new” insurance policies had already started.
Dealers were instructed to explain but many didn’t.
This goes beyond miscommunication. It’s misrepresentation.
The Role of Insurance
Insurers weren’t necessarily complicit but their policies made the accounting trick possible. China’s system reports two data sets:
Wholesale (manufacturer to dealer)
Retail (based on insurance registration)
But when policies are used to pad numbers, even retail data loses credibility.
Why It Matters
China’s EV market is under extreme pressure with a price war, subsidy cuts, and overcapacity. Brands like Neta are now in bankruptcy; Zeekr is facing public backlash.
Artificial sales may buy time, but they leave behind unsold stock, confused buyers, and reputational damage.
Final Thought
Sales figures shape investor confidence, policy decisions, and public trust.
When those numbers are inflated using insurance loopholes, it doesn’t just distort reality it undermines the very system meant to ensure transparency. Because if tens of thousands of EVs can be “sold” without drivers.
