The Ministry of Commerce recently held a meeting with leading automotive companies to gather feedback on proposed policy changes. According to sources close to the matter, the ministry is currently working on supporting measures for its broader automobile industry development strategy. These include updates to trade policies, brand sales management guidelines, and regulations for the used car market.
One of the most controversial topics discussed was the proposed minimum distance between car dealerships. Previously, the regulation required a 15-kilometer gap between stores, but some manufacturers at the meeting argued that this should be reduced to about 4 kilometers. This sparked debate among industry participants, as some believed the change could lead to market saturation and harm the long-term sustainability of specialized dealers.
An industry expert told reporters that while regional marketing models are important and should be supported, an overly aggressive expansion of dealerships within short distances could create competition that undermines the value of individual stores. He emphasized that many specialty dealers currently have limited influence in product promotion and would struggle under such conditions.
The upcoming "Automobile Brand Sales Management Method" has drawn significant attention. It is also reported that the new regulations may introduce specific provisions regarding the division of domestic and imported vehicles, as well as joint ventures, in line with the updated industry policy. Under the proposed rules, vehicle operators may need to hold both brand agency rights and operating rights, not just the ability to sell cars. Additionally, each brand's dealership must be an independent business entity.
Yu Jianhua, deputy director of the Department of Commerce, mentioned earlier that the industry is closely watching the transition period set to end next year and how the government will handle vehicle import management after the removal of quota permits. He confirmed that relevant work is ongoing, though no final decisions have been made yet.
This development marks a critical moment for the auto sector, as it seeks to balance growth, competition, and sustainability in a rapidly evolving market.
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