Central government endorses support for domestic brands

Carmen Lee From Gasgoo.com

Gasgoo.com (Shanghai November 20) - A post on China Association of Automobile Manufacturers Deputy Secretery Zhu Yiping's Weibo last week has drawn the attention of several in the automotive industry, Nanfang Daily reported. In the post, Mr. Zhu wrote that the central government is pushing regional and local leaders to lead in promoting domestic production of Chinese branded cars. Meanwhile, the Ministry of Industry and Information held a meeting on that very subject early last week.

According to posts on Weibo, central government officials have been dispatched to carry out inspections of FAW, Dongfeng and other major automobile manufacturers, with the primary goal of accessing the status of each manufacturer's own brand. The government has taken a special interest in the fortunes of own brands, including Dongfeng's Venucia and GAC's Trumpchi. "Cadre leaders [show] the strongest support for new own brands."

Earlier this year, Jilin authorities released legislation recommending government bodies to only purchase Chinese made vehicles and allocate official funds to domestic manufacturers.

Own brands are becoming more and more successful, but are still far away from competing with foreign brands. Official aid may go a long way in helping Chinese brands compete.

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