Ministry of Commerce: supporting policies for the automobile industry


The Ministry of Commerce recently convened a meeting of the leading automotive companies to obtain opinions. The reporter recently learned from sources well informed that the Ministry of Commerce is developing supporting measures for the automobile industry development policy. This includes the automobile trade policy, automobile brand sales management methods and regulations for the used car market, etc. . The shortest distance between stores should be within 4 kilometers? This person told reporters that the Ministry of Commerce recently convened a meeting of the automotive industry veterans to study the four documents including the above-mentioned legal rules. At the meeting, the regulations regarding the shortest distance between each car dealership caused controversy among participants. According to him, the original provisions of the automobile brand sales management regulations stipulated that the shortest distance between two stores was 15 kilometers, but many manufacturers responsible persons at the meeting expressed their opposition and proposed that the shortest distance should be about 4 kilometers. An automotive industry expert said in an interview with reporters that car dealerships formed regional marketing models and should be encouraged and supported. However, if a manufacturer insists on building a store within 4 kilometers, it will cause the store to overheat. This in itself is not conducive to the development of specialty stores that currently do not have much say in product marketing. The “Automobile Brand Sales Management Method” has attracted much attention. It is also understood that the “Automobile Brand Sales Management Regulations” currently under formulation may make specific provisions on the division of individual cars or joint ventures of domestic cars and imported cars in accordance with the new automobile industry policy. The new regulations may require that motor vehicle operators must have brand agency rights and operating rights, not just the qualification to sell motor vehicles. Also, each brand's agency must be an independent business entity. Yu Jianhua, deputy director of the Department of Commerce of the Ministry of Commerce, mentioned in an interview with the media earlier that many people in the industry are concerned about the end of the next year's transition period and the country’s approach to vehicle import management after the final elimination of vehicle quota permits. He said that the work is in progress. (Lu Huimin)

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