BYD is at the heart of a scandal: the brand is allegedly selling new cars as used ones for this dubious reason

New cars sold as used? This is the scandal currently rocking the Chinese automotive industry. BYD is in the authorities' sights, and this could well hide a dubious sales strategy.

In just a few years, BYD has gone from outsider status to world leader in electric vehicles. In 2024, the Chinese manufacturer even surpassed Tesla in production volume, with more accessible models well suited to the expectations of emerging markets. This meteoric rise is based on aggressive pricing, massive government aid, and a very aggressive distribution strategy.

But while BYD is consolidating its market position, a suspicious practice is now attracting the attention of the Chinese authorities. New cars, still wrapped and with no mileage on the odometer, are sold on the used market. Their appearance leaves no doubt: plastic still on the seats, impeccable bodywork, no signs of use. Yet, they are classified as used vehicles.

New BYD cars are being registered as used vehicles to inflate the brand's sales

According to a report by Reuters, Chinese authorities suspect that certain manufacturers, including BYD, are using a system flaw to artificially inflate their sales. The principle is simple: the vehicles are registered as sold to partner dealers, which allows them to receive the subsidies for the purchase. These same cars, although new and with zero mileage, are then resold as used models at reduced prices. A practice that distorts official figures and fuels a parallel market of “fake” used vehicles.

The Chinese ministry has summoned several industry players to clarify the situation, including BYD, Dongfeng, but also manufacturer associations and online sales platforms. Although the practice is not clearly illegal, it raises questions about the use of public aid and market transparency. In the background, the entire economic model of the sector is being called into question. Market saturation and price wars are pushing some groups to find devious ways to remain competitive, even if it means cheating by blurring the line between new and used.