Chinese government says no to foreign cars
Of late the Chinese government has been criticized for imposing strict new guidelines for foreign auto makers. However, that’s not all. The Chinese government in its bid to protect its local automobile industry has taken extremely strict measures that have not gone down too well with foreign auto makers, and rightly so.
The Chinese government had announced in December 2011 that aid and incentive to foreign automobile makers who wish to set up manufacturing facilities in their land would not be provided. This announcement had auto companies from Europe, Asia, UK, and US who wanted to establish business in China fuming. A report by Macquarie Group Ltd., said: “Most countries use official cars as a way to showcase the domestic auto industry, so we see this as a natural progression of the development of China’s automotive industry.”
The knockout punch for bruised and battered foreign automobile makers in China comes with the Ministry of Industry and Information Technology releasing its list of 412 cars available for purchase for various government bodies in China. Shocking! There is not a single foreign auto maker mentioned on the list. Every car mentioned on the list is by Chinese auto makers. Presently more than 80% of vehicles used in government’s fleets are foreign. This move is expected to hit foreign automobile companies hard, with Audi’s A6L believed to suffer a major blow.
A report by Macquarie Group Ltd., said: “Most countries use official cars as a way to showcase the domestic auto industry, so we see this as a natural progression of the development of China’s automotive industry.”