Ministry targets auto price-fixing
Print Edition
The Ministry of Commerce said it is actively studying measures to improve current regulations on auto sales in response to rising complaints over price-fixing that has led to exorbitant prices of foreign cars.
“We’ve noticed reports of inharmonious relationships between carmakers and dealers. It is necessary to revise regulations in the sector,” ministry spokesman Shen Danyang said yesterday. Current auto sales regulations, unveiled in 2005, allow carmakers to control a large part of the sales and services of their vehicles in the Chinese market. Those rights, while holding carmakers responsible for product quality, have prompted complaints that minimum prices have been set for dealers. Shen said suppliers found to be abusing market dominance to fix prices will be punished according to the country’s anti-monopoly law.
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