Electric vehicle enthusiasts and automotive industry observers are buzzing about a developing scandal in China involving Geely’s Zeekr, its premium electric car brand. Recent reports suggest Zeekr is under investigation for allegedly selling pre-registered and insured vehicles as new to customers. This has sparked a major controversy, impacting the brand’s reputation and raising serious questions about its sales practices. This blog post provides a comprehensive analysis of the situation, using SEO keywords to help you stay informed.
According to investigations by the China Securities Journal, Zeekr allegedly used its “direct sales network” to sell these vehicles across various Chinese cities. The issue centers around vehicles designated as “inventory cars,” which had already been insured and registered before being sold to customers. In some cases, these vehicles were even transferred from third-party company accounts. Electric car buyers were allegedly offered these vehicles under the guise of “limited-time discounts.” These cars, often with low mileage, were marketed as “zero-kilometer used” cars, deceiving buyers into believing they were purchasing brand-new electric vehicles.
Electric car buyers in Guiyang, Chongqing, and Guangzhou have come forward with complaints. They discovered that the cars they purchased had already been insured with mandatory Chinese traffic insurance or registered under the names of other companies. Sales documents, in some instances, showed that the vehicles were registered under the names of third-party companies, such as an auto firm in Xiamen. Customers only learned about these details after completing their bookings and receiving their vehicles. This lack of transparency raises serious concerns regarding consumer rights.
One buyer in Guizhou reported receiving a vehicle with a 2024 manufacturing date, despite being advertised as a 2025 model. Another buyer in Chongqing claimed that the seller initially described the vehicle as having been “reserved for export but not sold,” and later tried to cover up the fact by offering free insurance.
Adding to the complexity of the situation, some customers have reported conducting transactions through fraudulent websites that closely resembled Zeekr’s official website. These websites allegedly instructed customers to transfer payments to third-party accounts, further raising red flags about the legitimacy of these sales. This underscores the importance of internet safety and e-commerce security in the context of online car buying.
These activities seem to coincide with an unusual surge in sales figures reported in December 2024. Data from the China Passenger Car Association indicates that sales from Zeekr’s company accounts in Xiamen and Shenzhen reached 90% and 86%, respectively, during that month. Experts suspect that these vehicles were later transferred to other cities and sold indirectly, artificially inflating the company’s delivery numbers. This tactic, if proven, could significantly harm the brand image and customer trust.
The alleged sales process involves Xiamen Jianfa Auto Company, a regional partner of Zeekr. This company operates both retail and financial services. Through this partnership, vehicles were reportedly re-sold after insurance and ownership transfers. This complex structure makes the fraud detection and investigation more challenging.
Legal experts emphasize that if customers were not informed that their vehicles had been previously registered, it constitutes a violation of their right to transparent information and fair pricing. Consumer protection and ethical business practices are clearly at stake.
As of July 19, Zeekr has not issued any official statements or responses to the allegations. This silence further fuels the speculation and concern surrounding the brand. The controversy comes at a pivotal moment for Zeekr, as the company is restructuring its sales channels and Geely is reportedly preparing to privatize Zeekr. This situation could significantly impact the company’s future, its market share, and its ability to compete in the ever-evolving electric vehicle market.
This situation highlights the need for rigorous quality control, transparency in the automotive industry, and robust consumer protection laws. The investigation into Zeekr’s sales practices is a crucial test for Geely and its commitment to ethical business conduct. Stay tuned for further updates on this developing story and the future of electric car sales in China.
