Tesla Rivals BYD, Toyota, VW, GM Accused Of Faking Car Sales In China To Hit Targets: Report

Benzinga
2025.07.28 11:47
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Tesla's rivals, including BYD, Toyota, Volkswagen, and GM, are accused of inflating car sales figures in China to meet targets, according to a Reuters report. A review of consumer complaints indicates this practice has been ongoing, with many complaints filed in 2024 and 2025. Experts warn that such tactics distort inventory assessments and misjudge market demand. The Chinese government has expressed concerns over fierce competition in the auto industry, urging companies to settle supplier dues promptly. Other automakers like Geely, Li Auto, and Nissan are also implicated in the allegations.

Tesla Inc. Rivals BYD Co. Ltd. BYDDY BYDDF, Toyota Motor Corp TM, Volkswagen AG VLKAF and Buick, owned by General Motors Co. 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. GELYF GELYY, Li Auto Inc. LI and Nissan 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.

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Why It Matters: The news follows an earlier report where brands like Zeekr Intelligent Technology Holdings Ltd. 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.

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