In recent times, Chinese new energy vehicle companies are facing a difficult struggle for survival, resorting to various “tricks” to stay afloat. A well-known automotive blogger recently revealed that in order to attract customers to place orders and “please the leaders,” there is widespread falsification of order data when new cars are launched. This news has resonated within the industry, prompting many insiders to expose the dark side of the automotive sector.
With over three million followers, renowned automotive blogger Wu Pei recently posted on Weibo, pointing out the common practice in the automotive industry of falsifying order data to show high demand before the actual release of new cars. Many car manufacturers engage in such behavior to keep leaders happy and create a false impression of high demand, by arranging with advertising agencies to fabricate fake orders. However, as time goes by, and the cars are delivered and enter the market, the truth eventually comes to light, unable to be concealed any longer.
The term “small order” refers to when customers show interest in purchasing a particular vehicle, and they provide a prepayment of a few thousand yuan as a deposit, with the option of a refund if they change their minds. These “small orders” are used to showcase the popularity of a product to the market and investors, but often contain a significant degree of falsification, with uncertain conversion rates.
On the other hand, “big orders” signify that a consumer has signed a formal purchase contract with the car manufacturer, initiating the production and preparation process of the vehicle, paying a higher and usually non-refundable deposit, and confirming all the detailed specifications of the vehicle.
Wu Pei clarified that his expose was not targeting any specific brand or company but raising alarm bells about the common practice prevailing throughout the industry.
Blogger “Xiao Li Car Reviews Li Jianhong” bluntly stated that a few years ago, a domestically produced new energy vehicle claimed to have received over 60,000 preorders within 72 hours of its launch. However, a year after its release, the sales figures failed to surpass 60,000 units. Once the lie was exposed, the company scrambled to delete the misleading posts from the internet.
Wu Pei’s revelation has unveiled just a fraction of the marketing malpractices in the Chinese automotive industry, sparking deep discussions on various online platforms.
According to insider sources cited by “Urban Express,” this data falsification has evolved into a complete industry chain. Advertising agencies plan marketing strategies for car manufacturers months in advance, focusing on creating the illusion of high demand with fabricated order data. These plans not only include falsified order numbers but also involve organizing fake online hype and scripting marketing dialogues with users in advance.
The automotive new media outlet “Negative Reviews on Cars” stated that an unnamed marketing executive from a car manufacturer openly admitted, “This is an unwritten rule in the industry, especially for some new car models that lack competitiveness and are simply not selling. However, this fact must not be revealed to upper management.”
A senior PR professional shared that when working on projects for car manufacturers, it is crucial to secure a sufficient number of orders after a product launch event; otherwise, the full project funds may not be received.
Another supplier representative mentioned that their company was also subjected to so-called intent indicators, essentially “small orders” enforced by the main manufacturers.
After the official announcement of a new car, they alone secured 23 intent indicator orders. Even many brand internal employees are required to use their own money to “voluntarily support” an order at the time of a new car launch.
After factors such as aerodynamic coefficients, collision tests, energy consumption, and autonomous driving capabilities became manipulated, the order volume turned into just another aspect of the car manufacturers’ marketing strategies, losing its intended reference value.
Starting from 2023, the government ceased subsidies for new energy vehicle manufacturers, prompting many companies to expedite production and registration before the subsidy deadline to maximize benefits.
Initially, they used the purchase indicators of their own employees or supplier companies to transfer the vehicles under their names, pretending to have already made sales. Later, they offered the cars at lower prices with various incentives to entice real consumers, completing the transfer only when actual orders were placed.
This practice has evolved into a common tactic used by many companies today: “zero-kilometer second-hand cars.” Essentially, this behavior advances future sales figures in advance to maintain appearances and reputation in the present.
However, behind the falsification of marketing data lies the ongoing price war among Chinese new energy vehicle companies, resulting in long-term losses, leading to the elimination of numerous players from the market.
In the first half of this year, financial reports from several listed car companies in China revealed worsening losses and a continued decline in performance. NIO Inc. and six other companies collectively suffered losses amounting to 18 billion yuan in the first half of the year, bringing the overall profit margins of the entire automotive industry to record lows.
According to data from the China Association of Automobile Manufacturers, price reductions in the Chinese automotive market from January to May 2024 exceeded 90% of the total reductions for the entire year 2023, with electric vehicles generally being sold at a loss. Additionally, according to the China Automobile Dealer Association, the automotive industry’s profits decreased by 7.3% year-on-year in 2024, with a profit margin of only 4.4%; by the first quarter of 2025, the average profit margin in the automotive industry had plummeted to 3.9%, marking a ten-year low.
Industry experts widely believe that the oversupply of new energy vehicles, imbalances in supply and demand, accelerated technological advancements, the withdrawal of subsidies, and pressures from the supply chain, have collectively pushed the industry’s overall profitability to historic lows.
As a result, the surviving car manufacturers are adopting a mentality of focusing on surviving today without much concern for tomorrow. Practices such as cutting corners in parts, substituting smartphone chips for automotive-grade chips, and the falsification of marketing data are becoming increasingly prevalent.
According to a spot check report by “Car Emperor” in March 2025, certain new energy vehicle models priced below 70,000 yuan have been cutting costs by eliminating airbags, using low-cost controllers, and even omitting OTA upgrade functionalities. These cost-cutting measures may lead to undetected quality issues in the initial usage period, potentially evolving into risks concerning safety and reliability in the medium to long term.