China plans action against used car sales

China's industry ministry is planning to ban the resale of cars within six months of their initial registration as part of efforts to combat sales of so-called zero-mileage used cars, an industry association publication reported on Saturday.

Zero-mileage used cars have emerged in China because of the uniquely cutthroat competition for sales in the world's largest auto market, which is reeling from a brutal, years-long price war caused by chronic overcapacity. The practice involves insuring a new vehicle before it is sold, allowing automakers and their dealers to meet sales targets. But it can create hassles for customers.

Auto Review reported the plan in an editorial published on its WeChat account.