Viral EV Scandal Exposed: China’s “Brand-New” Electric Cars Are Actually Used — And BYD Is at the Center of It All
What if your new EV wasn’t really new? A staggering nationwide fraud is rocking China’s electric vehicle (EV) industry — and it’s threatening to explode into a full-blown economic crisis.
The Scam That’s Shaking China’s EV Empire
Imagine buying a shiny, brand-new EV — showroom fresh, zero kilometers — only to discover later it’s been registered, rebranded, and officially marked as used. That’s exactly what’s unraveling in China right now in a scandal that could bring down some of its biggest EV giants, including BYD, the so-called Tesla of China.
At the heart of it is a deceptive trick known as the “zero-kilometer used car” scam. This term sounds harmless, but actually signals structural fraud infecting the Chinese EV ecosystem.
How the Scam Works: Four Simple Steps, Massive Fallout
Here’s the playbook behind the scenes:
- Pre-Registration Game: Automakers like BYD, Geely, Great Wall Motors, and others pre-register new vehicles, making them appear “sold” on paper.
- Government Subsidy Grab: These fake sales help companies unlock government EV incentives tied to unit sales.
- Financial Smoke & Mirrors: Fake revenue boosts quarterly financials, props up stock prices, and secures massive bank loans.
- Rebranded as “Used”: After sitting unsold for months, these cars are reintroduced to the market as “zero-kilometer used cars.”
The result? Buyers think they’re getting new vehicles, but they’re actually purchasing ones already registered, wrecking resale value, voiding warranties, and compromising insurance claims.
The BYD Meltdown: Discounts, Desperation & a Stock Plunge
BYD, once hailed as China’s green-tech crown jewel, is now in full panic mode.
- In May 2025, BYD slashed prices on 22 models — some by over 30%.
- The catch? You could only get the discount if you traded in your current vehicle, no matter how new it was.
- Markets reacted fast: BYD’s stock plunged 8.6% overnight, triggering a cascade — XPeng down 9.5%, Leapmotor, NIO, and others all in freefall.
This isn’t price competition. It’s corporate liquidation under pressure.
A Profit-Free War: 138 Billion Yuan in EV Industry Losses
The price war is eating the EV industry alive:
- In just 8 months of 2023, automakers lost ¥138 billion.
- By 2024, the average profit per EV was just ¥2,000, with some brands losing over ¥10,000 per car.
- The average EV price dropped from ¥220,000 to just ¥140,000 in one year.
Manufacturers are cannibalizing their own industry and still faking growth through registration scams.
Cracks in the System: Dealers & Suppliers on Life Support
The impact doesn’t stop at automakers:
- BYD dealers are stuck holding 2.5 months of unsold stock — far above the 1.5-month warning zone.
- Over 400 dealerships have shut down, unable to stay afloat.
- Supply chains are gasping: auto parts suppliers face 20% annual price cuts and 180+ day delays in payments, double the global average.
Entire networks of small businesses are collapsing under the weight of inflated expectations and fake prosperity.
Export Route Blocked: BYD’s Global Dream Is Fading
BYD hoped to escape the domestic mess with aggressive exports. But the door is slamming shut:
- In April 2025, the EU hit Chinese EVs with up to 35% tariffs, citing unfair subsidies.
- The U.S. blocked China-affiliated EV brands under the Inflation Reduction Act.
- India, Indonesia, and others are imposing protectionist policies.
Without global buyers, BYD has nowhere left to run.
The Debt Bomb Is Ticking
BYD’s financials are flashing red:
- Accounts receivable hit ¥112 billion in Q1 2025 — a 19.3% jump in just one quarter.
- Debt ratio surged to 68%, a five-year high.
- Credit is tightening. Sales are stalling. If subsidies stop, collapse becomes inevitable.
This isn’t speculation. It’s the Evergrande playbook — playing out in electric cars.
The Real Victims: Buyers, Workers, and Taxpayers
When the house of cards falls, it’s not just CEOs and shareholders who suffer:
- Families unknowingly buying “used” new cars are denied warranties and insurance.
- Young buyers are locked into loans for plummeting assets.
- Suppliers and dealers face bankruptcy.
- And Chinese taxpayers are left holding the bag — an estimated ¥85 billion in wasted subsidies.
This isn’t just financial mismanagement. It’s a betrayal on a national scale.
Trust Crisis in “Made in China”
What’s happening now reveals a much deeper rot in China’s industrial strategy:
- Short-term metrics over long-term value
- Debt-fueled illusions over real innovation
- Government handouts masking economic instability
The crash is no longer a question of if, but when — and it’s already begun.
Final Verdict: China’s EV Bubble Is Bursting
From fake EV sales to collapsing exports, bankrupt suppliers to vanishing trust — this isn’t just a scandal. It’s a systemic failure.
The next big Chinese collapse won’t be in real estate. It will be in EVs. And the fuse has already been lit.
Stay informed. Stay alert. The “green miracle” might just be China’s next great deception.
For more information about the BYD EVs, visit their official website.
👉 Please 📩SUBSCRIBE to us for more real-world EV analysis, news, and deep dives — written for EV fans by EV fans. It’s FREE!
Hey, I’m Badal! I’m super passionate about cars—especially electric ones. Whether it’s EVs, electric trucks, bikes, or anything with a battery and wheels, I’m all in. I love writing blogs and articles that break things down for fellow enthusiasts and curious readers alike. Hope you enjoy the ride as much as I do!
