Tesla Inc. Rivals BYD Co. Ltd.
What Happened: A review of over 97 consumer complaints in China on three well-known websites points to the tactic being used by multiple brands in the region, Reuters reported on Monday.
Some complaints date as far back as 2021, the report suggests, but a majority of them were filed in 2024 and 2025 on 12365auto.com, a state-run China.com 315 auto consumer complaint platform, as well as Black Cat, the report said.
Yale Zhang, an expert cited in the report, said the practice disguises inventory, leading to "a misjudgment of monthly demand within the industry and result in increased production scheduling."
14 complaints said that the brands' dealerships in China told them the practice was undertaken to meet sales targets. Automakers such as Geely Automobile Holdings Ltd.
BYD, Toyota, Volkswagen, General Motors, Geely, Li Auto and Nissan did not immediately respond to Benzinga's request for comment.
Why It Matters: The news follows an earlier report where brands like Zeekr Intelligent Technology Holdings Ltd.
The government had also previously raised concerns about the fierce competition in the industry, urging companies to also clear dues to the suppliers within 60 days by introducing a regulation in March, which came into effect in June.
