China’s car market may be the biggest in the world, but the pressure of competition has brought some questionable tactics into play. According to China’s state news agency Xinhua, certain carmakers have been exaggerating pre-sale orders to create the impression of strong demand, a move that could mislead both consumers and investors.
According to Reuters, The Xinhua Daily Telegraph reported that some companies went as far as asking their own employees to place refundable deposits, while others turned to what it called a “grey industry chain” that specialises in artificially boosting order books. These inflated figures, the report added, are rarely verified by third parties and often end up being far higher than the actual number of cars delivered to customers.
This practice has already raised eyebrows among regulators. In September, China’s industry ministry announced a three-month campaign to clamp down on false marketing and other irregular online activity in the automotive sector. Industry insiders admit that the trend is becoming a problem, with concerns that it could damage the sector’s long-term credibility.







