Surging car sales from China’s automakers might not be quite as clear-cut as they seem. Behind the headline-grabbing numbers lies a practice that’s prompting questions: some companies appear to be boosting reported sales by insuring vehicles before they’re actually sold.

A new report from Reuters sheds light on this strategy, claiming that several of China’s top car manufacturers have been counting cars as “sold” once they’re insured, even if those vehicles haven’t yet reached buyers. Thanks to this approach, sales figures appear stronger than they truly are, giving the impression that targets are being met.

Read: China’s Next Supercar Is Coming For Ferrari And They’re Not Laughing Anymore

Earlier this month, reports surfaced that Neta and Zeekr had insured tens of thousands of vehicles before selling them to buyers, allowing the companies to book sales early under Chinese industry car registration practices. In the case of Neta, it reportedly recorded early sales of at least 64,719 cars from January 2023 to March 2024, more than half of the total 117,000 vehicles it sold over that period.

As it turns out, many other companies could be doing the same. Reuters recently examined 97 customer complaints related to the controversial sales practice, and in more than a dozen cases, buyers were told by dealerships that the method was used specifically to help manufacturers hit sales goals. In many cases, customers only discovered their new vehicles had been previously insured after completing the purchase.

Dealerships affiliated with major brands such as FAW Hongqi, SAIC Roewe, SAIC VW, Dongfeng Nissan, GAC Toyota, GAC Honda, and SAIC GM have admitted to official media that insuring unsold vehicles is a practice used to meet sales targets.

Interestingly, a Honda spokesperson told Reuters that GAC Honda dealers are prohibited from taking out compulsory insurance before selling new cars. Similarly, FAW Hongqi says it does not engage in such shady practices. GM China also said that it only counts deliveries, not insured vehicles, in its sales reports.

Two key metrics are used to track sales in China. The first are reported from automakers to the industry association, showing sales from automakers to dealers. The second is retail data based on mandatory traffic insurance registrations, which captures actual sales to consumers.

The practice is understood to have first emerged as early as 2016 but is believed to have grown in popularity from early 2023 when the Chinese car price war kicked off. Companies like Li Auto have reportedly leaned heavily into publishing weekly sales rankings on social media, using only insurance registration numbers to demonstrate their performance.

China’s Association of Automobile Manufacturers (CAAM) has pushed back against the use of insurance data for public sales rankings, calling the figures unreliable and blaming them for fueling what it described this month as increasingly cutthroat.

Electric vehicles are evolving quickly, and in Brazil, their trajectory is shaped by more than environmental concerns. With crime and carjackings a part of daily life, demand for armored cars has surged, making Brazil home to the world’s largest civilian fleet of bulletproof vehicles. Even Toyota sells factory-armored Corollas and Hiluxes. Now, one of China’s rising EV brands is entering the market, armor and all.

More: Toyota Now Sells Bulletproof Corolla And Hilux Models In Brazil

It’s not been long since Zeekr burst onto the EV scene, quickly establishing itself as one of the most intriguing new carmakers from China. Alongside growing its local sales, it’s been rapidly expanding around the world, including South America, where a particularly interesting version of one of its EVs was recently spotted.

This particular Zeekr is an example of its first model, the 001. Launched a few years ago and updated in early 2024 with better range and more features, the 001 is a sleek estate that’s both luxurious and very, very quick in flagship FR guise. But this particular 001 isn’t grabbing headlines for speed or design.

An Electric Estate, Now with Ballistic Protection

Instead, this Zeekr 001 is believed to be the first armored example built. Recently spotted on the streets of Brazil, the blacked-out Zeekr looks completely normal from the outside. However, all of its panels have been armored, thick bulletproof windows have been added, and the panoramic glass roof has been strengthened.

Photos Weibo

While there’s no word on what company was responsible for the upgrades, the owner of this Zeekr must be quite important to justify the need to cruise around in a bulletproof EV. We don’t have any photos of the car’s undertray, but presumably, it too has been upgraded to ensure the battery pack can withstand any blasts from underneath.

Underpinning all 001 models is an 800-volt architecture with the option of a basic 95 kWh LFP battery and a larger 100 kW NMC pack. Entry-level models have a 416 hp electric motor driving the rear wheels, while all-wheel drive versions also add a 362 hp motor to the front axle. The flagship 001 FR lifts things to a new level, pumping out a combined 1,248 hp and 944 lb-ft (1,280 Nm), enough to send it to 62 mph (100 km/h) in just 2.07 seconds.