Part 11/15:
Estimates suggest that over 600,000 Chinese imports faced rejection or legal disputes within a single year. The impact was devastating for buyers who had believed they purchased new, reliable cars but instead found themselves victims of a fraudulent scheme that turned their dreams into financial burdens.
Behind the Curtain: The Root Causes of the 0 km Scandal
The scandal didn't emerge in isolation but was a product of systemic issues within China's auto industry:
- Excess capacity: By 2025, China’s EV sector faced enormous overproduction, with warehouses filling up and factory capacity far exceeding actual demand. Companies like BYD struggled to move their vast inventories, leading to a reliance on deceptive practices.