Chinese EV Brands Zeekr and Neta Inflated Sales With Pre-Delivery Insurance Tactics

The tactic allowed both brands to record sales the moment insurance was activated, not when the vehicle was actually delivered. That gave the appearance of stronger demand and faster sales turnover. But it also created a backlog of undelivered or artificially counted cars—raising questions about how many EVs have actually hit China’s roads.

This practice isn’t a one-off. Four major dealer associations in China recently voiced opposition to forced sales and accounting manipulation. Their statement signals growing industry concern over practices that inflate public sales data but add little real value.

The stakes are particularly high for Neta, whose parent company entered bankruptcy proceedings in June 2025. That context suggests the sales inflation may have been more than a pressure tactic—it may have been a survival strategy.

Implications Across the EV Ecosystem

Here’s what this means for different parts of the EV ecosystem:

• Automakers: Under pressure to show growth in a slowing domestic market, risking long-term trust for short-term gains
• Dealers: Caught in the middle, sometimes complicit, often burdened with unsold inventory that gets counted as sold
• Regulators: Likely to face renewed calls for tighter oversight of sales and insurance data practices
• Investors: Exposed to misleading signals about brand momentum and risk profiles

For China’s EV sector, where hundreds of brands are chasing a limited pool of buyers, the pressure to move units is pushing companies to the edge. The revelation underscores the need for clearer accounting standards and enforcement tied to actual deliveries—not insurance filings.

It also points to a likely shift in how EV success is measured in China—less about booking volume and more about sustained deliveries, user satisfaction, and capital discipline.