China is to release management measures for automobile sales in a bid to break the monopoly of brand licensing sales and build up a sharing, saving, and socialized automobile circulation system in the country, according to the Ministry of Commerce (MOC).
In January-February, China's automobile sales increased 8.8 percent year on year to 4.459 million units with the growth rate declining 4.9 percentage points from a year ago. This was mainly attributed to the high basis boosted by fast sales growth in 2016 and weaker tax policy support for purchasing of small-engine passenger vehicles, said Sun Jiwen, spokesman of MOC.
To promote automobile consumption, MOC would fully release consumption potential in second-hand automobile market by thoroughly calling off restrictions in migration of second-hand automobiles, spreading experience in parallel automobile imports, prioritize automobile supply, strengthen after-sale services, and modify the management measures for cycling of scraped automobiles, said Sun.
Under current management measures for automobile brand sales, the overwhelming voice of automobile brands in pricing has led to insufficient competition between 4S stores and dominated the pricing for automobiles, said Zhao Ping, an expert with China Council for the Promotion of International Trade Academy.
Upon the implementation of automobile sales management measure, the automobile brand sales management measure would be abolished.
Insiders say the new measure would effectively protection the interest of automobile dealers and bring import vehicle price back to a rational level in the future.
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