China calls for direct sales of auto parts to consumers, repair shops
China issued guidelines that will enable suppliers of original equipment to sell their products directly to consumers and nonauthorized dealers -- part of the government's effort to curb what it says are monopolistic practices.
Starting next year, automakers will be required to share maintenance and technical information of newly introduced models with independent repair shops, according to the guidelines jointly issued on Thursday by the National Development and Reform Commission and nine ministries.
The move comes after Chinese authorities doled out the biggest antitrust fines in the country since relevant rules came into effect six years ago. The latest guidelines are meant to allow fair competition and give consumers more choice, according to the statement.
"This is a good first step toward rules that will benefit consumers," said Yale Zhang, Shanghai-based managing director of researcher Autoforesight Shanghai Co. "The auto parts makers will be very happy too, as this means they can sell to more channels."
China's auto repair industry has progressed rapidly in the past few years but there "exists a market structure that's not optimal, has irregular development, lacks transparency and honesty and other problems," the ministries said in the statement.
In August, China levied total fines of 1.2 billion yuan ($200 million) on a dozen Japanese auto parts makers, and also penalized Chrysler Group and Volkswagen AG this month for antitrust practices.
The move comes after Chinese authorities doled out the biggest antitrust fines in the country since relevant rules came into effect six years ago. The latest guidelines are meant to allow fair competition and give consumers more choice, according to the statement.
"This is a good first step toward rules that will benefit consumers," said Yale Zhang, Shanghai-based managing director of researcher Autoforesight Shanghai Co. "The auto parts makers will be very happy too, as this means they can sell to more channels."
China's auto repair industry has progressed rapidly in the past few years but there "exists a market structure that's not optimal, has irregular development, lacks transparency and honesty and other problems," the ministries said in the statement.
In August, China levied total fines of 1.2 billion yuan ($200 million) on a dozen Japanese auto parts makers, and also penalized Chrysler Group and Volkswagen AG this month for antitrust practices.
