China’s Ministry of Industry and Information Technology (MIIT) intends to ban the resale of cars within six months of their initial registration, targeting the practice of selling “zero-mileage used cars.”
The ban on reselling cars aims to address the intense competition in the world’s largest auto market, which has been plagued by chronic overcapacity and a long-standing price war. This proposal, reported by Auto Review, a publication of the China Association of Automobile Manufacturers, on July 19, 2025, seeks to restore order and protect consumers from misleading sales tactics.
China's Zeekr says it did not sell or register zero-mileage used cars https://t.co/1DYb8KT2w3 https://t.co/1DYb8KT2w3
— Reuters (@Reuters) July 20, 2025Zero-mileage used cars emerge when dealers register and insure new vehicles to meet sales targets, then resell them as used at lower prices. This creates hassles for buyers, such as warranty issues and inflated insurance costs. The China Automobile Dealers Association has proposed a code system for used car exports to further regulate the sector.
China plans crackdown on zero-mileage used car saleshttps://t.co/p1c7XnXAzF pic.twitter.com/zM7RJ9EDiv
— PiQ (@PiQSuite) July 20, 2025Companies like Chery and BYD plan to hold dealers accountable for violations, including pre-sale licensing. Great Wall Motor CEO Wei Jianjun highlighted the issue in May 2025, sparking nationwide debate. Recent government signals include a condemnation by a Communist Party newspaper and the cabinet’s pledge on July 18 to control “irrational” competition.
If implemented, the ban could stabilise the industry but challenge dealers reliant on these practices. Analysts from Bloomberg note that overcapacity has led to unsustainable pricing, with electric vehicle (EV) sales particularly affected.
