China EV brands Zeekr, Neta inflated car sales using insurance scheme

Neta and Zeekr, Chinese EV brands, inflated sales figures by pre-insuring vehicles, allowing them to book sales before cars reached buyers. Neta inflated over 60,000 sales from early 2023 to March 2024, while Zeekr used similar tactics in Xiamen. This practice, driven by intense competition, has drawn scrutiny from state media and regulators, prompting concerns about industry practices.