KATHMANDU: China is planning to ban the resale of cars within six months of their registration.
The move aims to stop the growing trend of “zero-mileage” used cars, according to a report by Auto Review, a publication under the China Association of Automobile Manufacturers, as reported by Reuters.
Zero-mileage used cars are new vehicles that are insured and registered but never actually driven. This practice has become common due to intense competition in the world’s largest car market.
Manufacturers and dealers often register cars before selling them to meet sales targets. However, this creates confusion and inconvenience for customers.
To tackle this issue, the Ministry of Industry and Information Technology is preparing new rules. If implemented, this will be the first official step by the government to end the practice.
The report also mentioned that major carmakers like Chery and BYD are taking action. They plan to hold their dealers responsible if cars are licensed before being sold.
In addition, the China Automobile Dealers Association has suggested a new code system for used car exports to improve transparency.
This issue gained national attention in May when the CEO of Great Wall Motor raised concerns. Since then, the government has shown signs of taking action.
These steps reflect a growing effort to bring order to a market that has suffered from years of price wars and oversupply.
