In Chengdu, a city of 21 million, a shopping mall showroom offers unprecedented deals on new cars, with discounts as steep as 50%. This is made possible by Zcar, a company that buys vehicles in bulk from automakers and dealerships, capitalizing on China’s oversupplied auto market. The root of this issue lies in years of government subsidies and policies aimed at establishing China as a global automotive leader, particularly in electric vehicles (EVs). While these policies have succeeded in boosting production, they have also led to a glut of vehicles that far exceeds consumer demand.