Tesla Inc. Rivals BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF), Toyota Motor Corp (NYSE:TM), Volkswagen AG (OTC:VLKAF) and Buick, owned by General Motors Co. (NYSE:GM), have been accused of inflating sales figures in China amid fierce competition.
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. (OTC:GELYF) (OTC:GELYY), Li Auto Inc. (NASDAQ:LI) and Nissan (OTC:NSANY) have also been named in the report.
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. (NYSE:ZK) and Neta Auto were accused of engaging in the practice as competition in China's domestic market has concerned authorities, who term it "irrational."
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.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Read Next:
- Elon Musk-Led Tesla Files For Model 3+ Trim In China With 500-Mile Range Amid Surge In Sales: Report
Photo: Johnathan Weiss/Shutterstock
