The price war in the Chinese automotive industry continues to escalate, with unprecedented “internal competition” leading to chaos, including the phenomenon of “zero-kilometer second-hand cars” where some automakers falsify sales volume data through deceptive transactions. Recently, the Chairman of Great Wall Motors, Wei Jianjun, and executives from BYD engaged in a heated exchange over the issue, intensifying the turmoil in the industry.
Wei Jianjun, Chairman of Great Wall Motors, revealed in an interview with Sina Finance the insider details of the phenomenon of “zero-kilometer second-hand cars” existing in the Chinese automotive industry. He bluntly stated, “There is a strange phenomenon now called ‘zero-kilometer second-hand cars,’ which means that once they get licensed, they are considered registered, as if they have been sold, but they end up becoming second-hand cars again.”
Wei Jianjun disclosed that currently, as many as three to four thousand merchants are selling these “zero-kilometer second-hand cars” on major platforms such as Dongchedi, Guazi, and Xianyu. Although these vehicles are legally classified as “second-hand cars,” their actual driven mileage is extremely low or even zero.
Why sell a new car as a second-hand car? Wei Jianjun explained that some automakers, in pursuit of impressive sales volume data and capital market performance, deliberately create the illusion of high sales through “zero-kilometer second-hand cars” to conceal their actual inventory backlog and financial pressures.
Wei Jianjun believes that such behavior not only seriously disrupts market order but also poses potential quality risks to consumers. After purchasing these vehicles, consumers may not be able to enjoy the warranties and after-sales services that new cars should have, making the path to safeguarding their rights unusually difficult.
On May 27, the Consumer Promotion Department of the Communist Party of China’s Ministry of Commerce urgently convened a meeting with BYD, Dongfeng Group, Guazi, and other relevant institutions and companies to discuss the issue of “zero-kilometer second-hand cars.”
Regarding the intervention of the Ministry of Commerce of the Communist Party of China, Yang Jigang, a researcher in the Chinese automotive industry, stated, “The root of the problem of ‘zero-kilometer second-hand cars’ lies in the unequal division of responsibilities between the main manufacturers and dealers, as well as the blind pursuit of sales volume data in the industry. It is difficult to eradicate solely through administrative intervention, and long-term constraints must be formed through optimizing market mechanisms and corporate self-discipline.”
Fu Yuwu, Honorary Chairman of the China Society of Automotive Engineering, commented, “The chaos of ‘zero-kilometer second-hand cars’ reflects the manifestation of abnormal inventory digestion and also demonstrates the industry’s blind pursuit of short-term sales volume. This distorted growth pattern disrupts market rules and is detrimental to the long-term sustainable development of the automotive industry.”
Behind the exposure of the “zero-kilometer second-hand car” chaos, a fierce verbal battle between two automotive giants in China—BYD and Great Wall Motors—has intensified.
BYD’s sales and export performance have been touted by official Chinese media as a “bright spot” in China’s economic growth.
In an interview, Wei Jianjun remarked, “Now the automotive industry also has its own ‘Evergrande’.” This statement was interpreted by outsiders as a possible reference to BYD, which has a relatively high debt ratio. According to financial reports, BYD’s total debt had reached 584.7 billion yuan in 2024.
Wei Jianjun also revisited the incident of reporting BYD’s “static pressure fuel tank” in the past, stating, “Blow out other people’s lights, the key is what kind of light it is. If it’s a ghost light, I must blow it out!”
In response, Li Yunfei, BYD’s Brand and PR General Manager, posted three Weibo posts, continuing his consistent metaphorical style. His posts included captions such as “Dogs can bite people! But people cannot bite dogs!” followed by a poster of the movie “The Ghouls,” and an illustration of “Zhong Kui Capturing Ghosts.” The final Weibo post had the caption, “Straight to the point, a fusion of East and West, the land of fish and rice!”
Li Yunfei’s three Weibo posts were widely interpreted as responses to Wei Jianjun’s remarks regarding “Evergrande in the automotive industry” and “blowing out lights.”
This verbal sparring between the two companies reflects the intense collision between the two enterprises in the market competition landscape. Data shows that in 2024 and January-April 2025, BYD’s sales of new energy vehicles far exceeded those of Great Wall Motors. However, despite BYD’s impressive sales performance, its inventory reached a staggering 116 billion yuan last year, ranking at the top of the industry, reflecting the financial pressures it faces amid rapid growth.
In the extreme internal competition in the automotive industry, where automakers strive to grab market share and quickly handle inventory, apart from the emergence of the peculiar phenomenon of “zero-kilometer second-hand cars,” the phenomenon of “high-priced purchases, low-priced sales” inversely intensifies.
A senior executive from an unnamed domestic automaker revealed to Yicai that automakers pressure dealers to overstock through various commercial policies, including sales rebates and financial incentives, inducing dealers to purchase vehicles beyond actual market demand.
“Even if dealers’ actual monthly demand is only 150 vehicles, manufacturers may incentivize them to purchase 200 vehicles or even more through preferential policies.” The source stated that this practice leads to significant dealer inventory backlog. “High-priced purchases, low-priced sales” have become commonplace.
According to the “2024 National Automobile Dealer Survival Status Survey Report” released by the China Automobile Distribution Association, in 2024, 84.4% of dealers experienced price inversion, with 60.4% of dealers showing a price inversion rate of over 15%. Severe price inversion consumes dealer working capital, and liquidity tightness has become the biggest challenge and risk for dealers.
The endless “internal competition” in the Chinese automotive industry has led to a situation where despite a sharp increase in sales of some new energy vehicles, profits have plummeted. According to the “2024 China Automobile Distribution Industry Annual Report” released by the China Automobile Distribution Association, from January to November 2024, the “price war” in the new car market led to an overall retail cumulative loss of 177.6 billion yuan. The profit proportion of national automobile dealers in 2024 dropped to 39.3%, down by 4.2 percentage points compared to 2023.