China has mapped out a draft auto industry anti-monopoly guidance for public opinion soliciting, according to a report by China National Radio (CNR) on Sunday.
As the CNR report held, the document provides that auto producers should not limit their supply of auto parts after sale without proper reasons, which, as an auto part producer said, would greatly foster competition in the after-sale market. In other words, the new policy will give consumers more choices as they can use at 4S car shops not only original auto parts but also original parts obtained via parallel import and parts of the same quality as their original parts.
Meanwhile, it is possible for auto buyers to use original parts at non-4S auto repair shops. All of these will bring better but lower-costing services for auto consumers in China.
Moreover, the guidance includes content that restricted ownership-registration of external second-hand vehicles in some Chinese localities involves monopoly, which makes market players very exciting as the move may significantly boost second-hand auto sales.
However, some issues such as identifying the quality of parts of alleged same quality as original parts are widely urged to be defined in a more detailed manner by the guidance maker, experts suggest. Later in May, the guidance will be submitted to relevant anti-monopoly authorities of the State Council for approval.
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