According to Zamon.uz, citing the “Reuters” agency, the Chinese auto industry has been artificially boosting car sales through a government-supported “grey market”. In this operation, cars that are “zero kilometers” fresh from the factory are registered, then exported as used — including to the market in Uzbekistan.
Reports indicate that newly manufactured cars in China are mandatorily registered and immediately sent to foreign countries as “used”. This allows car manufacturers to free up the domestic market and increase tax and export indicators. Reuters' analysis based on interviews emphasizes that this practice has been activated as a result of a “price war”.
Tu Le, the founder of the US-based Sino Auto Insights consulting firm, says: “As a result of the price war, companies are forced to find any means possible to record sales”.
Moreover, regional governments in China — Guangdong, Sichuan — encourage this practice at the state level: they expedite export licenses, grant tax benefits, and invest in infrastructure.
The head of Great Wall Motor has criticized such trade via email. The “People's Daily” newspaper also described this practice as a factor that intensifies the price war and leads to disorder in the domestic market, calling for strict control.
Among the recipient countries of exports are Central Asia, including Uzbekistan and Russia, as well as Middle Eastern countries. Notably, the market in these countries is significantly growing with the presence of “zero kilometer used” cars.
