Home
/ China News / News detail
China plans to overhaul regulations on branded auto sales
Shanghai, December 13, (Gasgoo.com) - China may take steps to overhaul a two-year-old government statute Regulations on Administration of Branded Auto Sales, which was put in place in 2005, government sources said.
The government has requested China Automobile Dealers Association (CADA) and other industry organizations to make amendments to Regulations on Administration of Branded Auto Sale, which has received wide criticism after it was implemented two years ago, local media Beijing Youth Daily reported yesterday.
"We're concerned that the Regulations have led to the domination of foreign automakers and their agents over the sales of imported vehicles, while home-grown auto dealers are becoming marginalized in the market," an auto industry expert said.
A recent investigation made by CADA and other auto industry organization found some problems linked to the two-year-old Regulations.
First, automakers are given a superior position to auto dealers; second, the preference given to 4S stores (a franchisee who provides sale, spare part, service and survey) make it difficult for small investors to become a franchised dealer.
In addtion, single-brand franchised stores, which are encouraged by the Regulations, have resulted in operational costs and wastes; finally, under the Regulation, the sales of imported vehicles are completely controlled by foreign automakers and their agents.
To address these problems, Chinese government is preparing to make major changes to the two-year-old Regulations.
Gasgoo not only offers timely news and profound insight about China auto industry, but also help with business connection and expansion for suppliers and purchasers via multiple channels and methods. Buyer service:buyer-support@gasgoo.comSeller Service:seller-support@gasgoo.com
All Rights Reserved. Do not reproduce, copy and use the editorial content without permission. Contact us: autonews@gasgoo.com
