Neta and Zeekr scandal: manipulation of sales figures revealed!

Neta and Zeekr scandal: manipulation of sales figures revealed!

In the Chinese e-car market, the manufacturers Neta and Zeekr are under serious suspicion of having manipulated their sales figures. According to reports from Reuters, by Electrive quoted, Neta recorded over 60,000 vehicles as sold before they were actually handed over to buyers. This practice raises significant questions about the transparency and credibility of the market.

At Neta, a total of 64,719 vehicles were recorded in this way between January 2023 and March 2024. This accounts for more than half of the officially reported sales figure of 117,000. The vehicles are equipped with insurance before the actual sale, which allows them to be officially declared as sold in China. This manipulation of sales figures comes at a time when competition in the Chinese electric car market is becoming more intense than ever.

Similar allegations against Zeekr

The premium brand Zeekr, part of the Geely Group, is also accused of using similar sales practices. Sales receipts and statements from buyers show that vehicles were provided with insurance through state-owned dealer Xiamen C&D Automobile before being sold to end customers. However, Zeekr has denied these allegations and emphasized that no vehicles were declared sold until they were handed over to customers. An internal audit team was set up to review the sales processes.

The reactions of the affected companies could also be related to the increasing uncertainty in the market. Neta, whose parent company Zhejiang Hozon New Energy Automobile has filed for bankruptcy, is experiencing significant financial difficulties and has had to close many of its branches. While the company achieved a sales peak of 152,000 vehicles in 2022, the number collapsed to just under 88,000 in 2024. Only 1,215 units were sold in the first quarter of 2025.

Government actions and market pressures

The Chinese electric car market is considered overheated, and the government has now taken measures to limit the intensifying discount wars between manufacturers. The pressure on companies to report sales figures is apparently leading some manufacturers to resort to questionable methods. A Neta trader expressed that the company has increased pressure on traders to adopt such practices.

Criticism of the methods of “zero kilometer cars” has increased recently. The government plans to ban the resale of vehicles reported as sold within six months of their registration to stabilize the market. These steps could be necessary in the long term to maintain consumer and investor confidence in the industry, as mistrust in the reliability of the sales figures could have fatal consequences for the growth of the electric car industry in China.

Overall, the situation at Neta and Zeekr shows how difficult it has become to gain a foothold in the competitive Chinese market. The manipulative sales practices are at the center of increasingly intense competition, which is being watched critically by the government. The pursuit of higher sales could ultimately destabilize the entire market, alarming both buyers and investors.