Zeekr Faces Allegations of Fraudulent Sales Tactics in China

In the fierce competition for sales in the automotive market, Zeekr has been embroiled in a storm of alleged fraudulent practices involving '0-kilometer used cars.' An investigation by Chinese Securities Journal reveals that since May this year, Zeekr, a smart electric vehicle brand under Zhejiang Geely Holding Group, has been accused of selling a large number of insured and transferred inventory vehicles as new cars through its direct sales network, using promotional phrases like 'limited-time offers' to mislead unsuspecting consumers, resulting in numerous complaints. Notably, this tactic intertwines with unusual company sales volumes reported in December 2024 in Shenzhen and Xiamen, not only suggesting consumer fraud but also bringing the covert method of '0-kilometer used cars' to the forefront as a tool for artificially inflating sales figures. Reports from various complaint platforms and consumers indicate that this practice has occurred across numerous regions in China: consumers in Guizhou, Chongqing, Guangzhou, and other areas discovered that the 'new cars' they purchased had already been insured and even registered, effectively turning them into 'used cars.' When they sought compensation, they often faced delays or refusals. Many stores are suspected of violating sales regulations to liquidate inventory and improve financial reports, with some manufacturers opting to register older new cars in one location before dispersing them for sale in other cities to avoid concentrated exposure to risk, including Zeekr. Since May, multiple market supervision departments and automotive quality complaint platforms have received reports of disputes involving Zeekr. One case involves a Guizhou consumer, Cai Jian (pseudonym), who reported that while he was shown a vehicle produced in February 2025, he received a car produced in December 2024. After initially refusing to replace the car, Zeekr eventually agreed to a replacement under pressure from complaints. Another consumer, Cheng Cheng (pseudonym), who paid a deposit for a 2025 Zeekr 007 model in Chongqing, claimed that the sales personnel intentionally concealed and distorted vehicle information, initially describing the car as a new vehicle that had never been insured, then later stating it came with free compulsory traffic accident insurance, thereby hiding its insurance history. A consumer from Guangzhou, Li Xing (pseudonym), reported a similar experience where he discovered the dealer had created a fake purchase platform resembling the Zeekr app, further complicating the issue. Li noted that over 80 individuals in his group experienced similar fraud and highlighted that the volume of complaints points to systemic issues within Zeekr. The abnormal sales figures reported in December 2024, particularly in Shenzhen and Xiamen, where company sales represented over 86% and 90% respectively, have raised eyebrows among industry experts, suggesting that these figures may not reflect genuine consumer demand. Observers have noted that such practices, including the manipulation of sales data to enhance company valuations, are not uncommon in the auto industry. With increasing scrutiny and complaints, the situation raises serious concerns about consumer rights and the integrity of sales practices in the electric vehicle market.