China targets inflated auto preorders amid crackdown
Chinese state media expose inflated auto preorders, regulators crack down
China targets inflated auto preorders amid crackdown
Chinese state media accuse automakers of inflating preorder numbers via third-party operators and deposits. Regulators begin a crackdown on false marketing.
2025-09-30T16:23:56+03:00
2025-09-30T16:23:56+03:00
2025-09-30T16:23:56+03:00
Chinese state media have sharply criticized the inflation of preorder numbers practiced by some automakers. According to Xinhua Daily Telegraph, companies create the illusion of strong demand by pushing employees to place refundable deposits or by using third-party operators that artificially boost bookings.The report stresses that these figures are not confirmed by independent agencies and far outstrip actual deliveries. As a result, consumers and investors get a distorted picture of demand, and the market overheats. Regulators have taken notice: in September, China’s industry ministry announced a three-month campaign to tackle false marketing and online violations in the auto sector.Economic Daily previously condemned the tactic as well, noting that it migrated from the smartphone industry, where companies boasted of millions of fake preorders. Nio chief William Li said his company does not participate in such practices and considered them harmful to the alignment of production with sales. That point lands: when orders are staged rather than real, planning turns into noise and confidence fades fast.Amid a bruising price war, carmakers are searching for ways to prop up metrics: selling new vehicles overseas as if they were used, and turning to insurance-like arrangements that inflate headline sales. It all ties back to overproduction embedded in China’s industrial policy. That may ease short-term pressure, but it treats the symptom, not the surplus—and the brand usually pays the bill later.
China auto market, inflated preorders, false marketing, automakers, regulators crackdown, Xinhua, Economic Daily, Nio, automotive sales, third-party operators, refundable deposits, price war
2025
Michael Powers
news
Chinese state media expose inflated auto preorders, regulators crack down
Chinese state media accuse automakers of inflating preorder numbers via third-party operators and deposits. Regulators begin a crackdown on false marketing.
Michael Powers, Editor
Chinese state media have sharply criticized the inflation of preorder numbers practiced by some automakers. According to Xinhua Daily Telegraph, companies create the illusion of strong demand by pushing employees to place refundable deposits or by using third-party operators that artificially boost bookings.
The report stresses that these figures are not confirmed by independent agencies and far outstrip actual deliveries. As a result, consumers and investors get a distorted picture of demand, and the market overheats. Regulators have taken notice: in September, China’s industry ministry announced a three-month campaign to tackle false marketing and online violations in the auto sector.
Economic Daily previously condemned the tactic as well, noting that it migrated from the smartphone industry, where companies boasted of millions of fake preorders. Nio chief William Li said his company does not participate in such practices and considered them harmful to the alignment of production with sales. That point lands: when orders are staged rather than real, planning turns into noise and confidence fades fast.
Amid a bruising price war, carmakers are searching for ways to prop up metrics: selling new vehicles overseas as if they were used, and turning to insurance-like arrangements that inflate headline sales. It all ties back to overproduction embedded in China’s industrial policy. That may ease short-term pressure, but it treats the symptom, not the surplus—and the brand usually pays the bill later.
