Shanghai (Reuters) The Ministry of Commerce of China will meet organisms and automotive producers within the sector, together with Byd and Dongfeng Motor to debate the rising gross sales of “used automobiles” which have by no means been pushed, an individual with direct data of the matter. The assembly is ready for Tuesday afternoon, the individual stated, talking on situation of anonymity because the particulars of the assembly had been reserved.
It comes after the president of the Great Wall Motor Wei Jianjun declared in an interview with Sina Finance final week {that a} phenomenon known as “second -hand automobiles with zero mileage” had emerged within the Chinese market following the struggle of years of the sector.
The phenomenon, he stated, concerned automobiles that had been recorded and had plaques – who offered them – however had by no means been pushed offered on the second hand market. Wei stated that at the very least 3000 to 4,000 sellers on Used Chinese automotive platforms had been promoting such automobiles.
The supply stated that the tactic was seen as a possible methodology within the sector for automotive producers and retailers to help gross sales of recent automobiles whereas making an attempt to realize aggressive gross sales targets.
Other contributors invited to the assembly embody the China Association of Automobile Producters (CAAM), China Automobile Dealers Association (Cada), in addition to some used automotive business platforms, in response to the individual. The Ministry of Commerce, Byd, Dongfeng Motor and Cada didn’t instantly reply to a remark request. Great Wall and Caam refused to remark.
The actions of Chinese automotive producers corresponding to Byd and Leapmotor prolonged losses after Reuters reported the assembly, with each 3.1%. Hong Kong’s Hang Seng automotive index dropped by over 2%.
(Report of Shanghai and Newsrooms of Beijing; Assembly of Clarence Fernandez and Kate Mayberry)
