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Ministry of Commerce: supporting policies for the automobile industry

The Ministry of Commerce recently held a meeting with top automotive industry leaders to gather feedback on upcoming policy reforms. According to insiders, the ministry is currently working on supporting measures for the new automobile development policy. These include updates to trade policies, brand sales management guidelines, and regulations governing 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 suggested reducing this to around 4 kilometers. This change has sparked debate among industry stakeholders. An automotive expert told reporters that while regional marketing models should be encouraged, limiting the distance between dealers could lead to oversaturation. "If a manufacturer insists on opening a store within 4 kilometers, it may cause unnecessary competition and harm the development of specialty stores," he said. He emphasized that current dealership structures need more autonomy in product marketing. The proposed "Automobile Brand Sales Management Method" has drawn significant attention. It's also reported that the new regulations may include specific provisions on the division of domestic and imported vehicles, as well as joint ventures under the updated industry policy. The revised rules might require vehicle operators to hold both brand agency rights and operational licenses, not just the right to sell cars. Additionally, each brand’s agency must function as an independent business entity. Yu Jianhua, deputy director of the Ministry of Commerce, previously mentioned that many in the industry are concerned about the transition period ending next year and how vehicle imports will be managed after the elimination of quota permits. He confirmed that the process is ongoing, with further details expected soon. This update reflects the evolving landscape of China’s auto sector, as policymakers aim to balance competition, consumer choice, and industry sustainability. (Lu Huimin)

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