The minimum distance between the stores should be 4 kilometers
The source told reporters that the Ministry of Commerce recently convened a meeting of the automotive industry executives to study four documents including the above-mentioned legal details. Among them, the regulations on the shortest distance between each automobile store caused controversy among the participants. According to him, the original text of the Measures for the Administration of Sales of Automobile Brands stipulated that the shortest distance between two specialty stores was 15 kilometers, but many manufacturers in charge at the meeting objected and suggested that the minimum distance should be about 4 kilometers.
An automotive industry expert said in an interview with reporters that the formation of a regional marketing model for auto stores should be encouraged and supported. However, if manufacturers insist on building a specialty store within 4 kilometers, objectively it will cause the specialty store to overheat. This in itself is not conducive to the development of specialty stores that currently have little say in product marketing.
Brand sales management measures have attracted much attention
It is also understood that the “Administrative Measures for the Sales of Automobile Brands” which is currently under development may make specific regulations on whether domestic or imported vehicles are to be operated separately or jointly according to the new automobile industry policy. The new rules may require auto dealerships to have brand agency and business rights, not just qualifications to sell motor vehicles. Also, the agency for each brand must be an independent operating entity.
Yu Jianhua, deputy director of the World Trade Department of the Ministry of Commerce, mentioned in an interview before that many people in the industry are concerned about the end of next year's transition period and the auto quota license is finally cancelled. He said the work was ongoing. "The WTO's relevant commitments will be strictly fulfilled, and all non-tariff measures will be cancelled in accordance with the prescribed schedule. The basic idea of all management methods is to achieve four compliances: one is in compliance with the relevant WTO regulations and procedures; the other is in compliance with China's" Foreign Trade Law " "Three are in line with China's reality; four are in line with the practices of other WTO members."
Yu Jianhua believes that learning from the common methods of other WTO members and effective management of imported cars and components is the general direction of China's imported car market in the future.