China’s Ministry of Commerce is investigating automakers over concerns of misrepresentation in new vehicle sales.
There are allegations of automakers providing 'zero-mile vehicles' to dealers at discounted rates to meet sales targets.
This misleading practice has raised concerns about fraud, especially given the lack of clear regulations in China regarding such practices.
The Chinese government, which heavily subsidizes the automotive sector, aims to address loopholes and prevent automakers from taking advantage of incentives through fraudulent means.