From July 18th to 21st, 2025, Nezha Auto and Zeekr garnered significant attention amid allegations of sales inflation through questionable practices.

Zeekr: Accused of "selling inventory vehicles as new," the company responded that it was merely a normal practice of discounted sales for display vehicles. As previously detailed by Weike, observers noticed unusual spikes in Zeekr model sales in Shenzhen, Xiamen, and other locations, with corporate purchases accounting for over 86%. The report questioned Zeekr's suspected practice of selling insured and transferred inventory vehicles as "new cars" to mislead consumers. In response, Zeekr stated on July 20th that the vehicles in question were display vehicles that had been insured but not registered, and were part of regular discounted sales, firmly denying the accusation of "inflating sales with used cars."

Nezha Auto's alleged sales inflation tactics were more specific and concerning.

According to media reports, Nezha Auto has long resorted to improper means of falsely reporting sales to meet aggressive targets, secure subsidies, or enhance financial reports, with a cumulative inflated sales volume exceeding 60,000 vehicles.

The company's core strategy involved purchasing insurance for vehicles before they were actually sold to end buyers, thereby recording these vehicles as sales in advance. This allowed Nezha to meet monthly and quarterly sales targets. These uninsured but insured vehicles are known in the industry as "zero-mileage used cars."

Records sent by Nezha to dealers reveal that from January 2023 to March 2024, at least 64,719 vehicles were recorded as sales in advance using this method, accounting for over 55% of Nezha's total reported sales of 117,000 vehicles during the same period—more than half.

A Nezha dealer disclosed to the media that Nezha Auto clearly informed them that these pre-insured vehicles would be counted as sold. Dealers were instructed to explain to car buyers that the compulsory traffic insurance was a "complimentary benefit" and to remind them that the insurance would expire soon and needed timely renewal.

Another dealer added that this practice began in late 2022, with the immediate goal of securing new energy vehicle purchase subsidies that were set to expire at the end of that year. Regarding dealers' concerns, Nezha's attitude was dismissive: "Just do it, everyone else is doing it."

Nezha Auto once enjoyed a brief period of glory.

In 2022, its annual sales reached 152,000 vehicles, successfully topping the sales chart for new energy vehicle startups that year. However, this prosperity was short-lived, followed by a sales decline: sales fell to 127,500 vehicles in 2023, a year-on-year decrease of 16.2%; sales plummeted by 63% to only 65,000 vehicles in 2024. Entering 2025, the situation worsened, with sales in the first quarter barely exceeding 1,000 vehicles and market share shrinking drastically.

Currently, Nezha is on the brink of bankruptcy. On June 12, 2025, the bankruptcy reorganization application of Nezha Auto's parent company, Ho-Zon New Energy, was accepted by the court, marking the official entry of this once top-selling startup into the judicial reorganization stage.