The Main Culprit Behind the Widespread Phenomenon of 0-KM Used Cars in China

KatadataOTO – The Chinese automotive industry is currently abuzz with a strange phenomenon. Many used cars offered in China turn out to have odometer readings in the hundreds or even near zero, or are still new.

Reported by Carnewschina on Thursday (19/05), units registered as used cars are being sold without ever having been used before. They are then sold at a much cheaper price than the new version.

Apparently, this is happening because many dealers are struggling to meet high sales targets set by manufacturers. 

Additionally, some brands in China are said to offer incentives to dealers for supplying new vehicles, even if the units are immediately sold as used cars afterward.

Photo : Carnewschina

This scheme makes it easier for dealers to reach sales targets and manage inventory, especially for less popular models.

“Internal sources reveal that manufacturers use this strategy to address liquidity issues and employee salaries,” wrote the Carnewschina report.

The lineup of used cars in new condition comes from various dealers, including former test drive vehicles.

It was further explained that this method also makes it easier for manufacturers to sell cars to the Central Asian and Middle Eastern markets. This is because used cars do not need to comply with emission standard regulations.

The price of these used cars becomes even cheaper. For example, a 2024 Nio ET5T is sold for 298,000 yuan (around Rp 680.3 million), while the 'used' version of the same model is 185,000 yuan or about Rp 422.3 million.

However, the vehicle and battery warranties are cut to three years and eight years.

Drawing Responses

Chinese manufacturer, GWM, said that in recent years this trend has become more frequent 

Photo : OLX Autos

According to GWM, many car prices have dropped from the range of 200,000 yuan (around Rp 456.8 million) to about 120,000 yuan or the equivalent of Rp 274.1 million.

“What kind of industrial product can offer a discount of 100,000 yuan (around Rp 228.4 million) while still maintaining its quality? How can we expect Chinese brands to grow in the global market,” said Wei Jianjun, Chairman of GWM, as quoted by Carnewschina.

So far, no similar incidents are known to have occurred in Indonesia. However, Chinese brands are indeed known for their price tags, which are significantly lower than similar models produced by other brands, such as those from Japan.