The minimum distance between stores should be 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 minimum 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.

Brand sales management approach attracts attention

It is also understood that the “Automobile Brand Sales Management Regulations” currently under development may make specific provisions on the division of a domestic vehicle and an imported vehicle into a joint venture or joint venture according to 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. "We will strictly implement relevant WTO commitments and cancel all non-tariff measures in accordance with the stipulated timetable. The basic train of thought for all management methods is to be in compliance with the following four requirements: 1. Conformity with relevant WTO regulations and procedures; 2 Conform to China's Foreign Trade Law "The third is in line with China's reality; four is in line with the practice of other WTO members."

Yu Jianhua believes that the effective management of imported automobiles and parts and components through the adoption of other WTO members’ methods of access will be the general direction of China’s imported automobile market in the future.