SHANGHAI: 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.