During China¡¯s annual parliament meeting in March, the two-week sessions of the National People¡¯s Congress (NPC) and the National People¡¯s Political Consultative Conference (CPPCC), members of the country¡¯s automotive sector made, as usual, comments and suggestions on how to better develop China¡¯s automobile industry.
Different from last year¡¯s session, where many members made legislative proposals to the government in supporting independent innovation and branding, focus this year has been on energy conservation, environmental protection, new energy vehicles and most important how the government can have a coordinated role in providing the necessary policy and regulatory environment for the growth of the industry.
In a very outspoken way, Zeng Qinghong, vice chairman and general manager of Guangzhou Automotive Industry Corp. pointed out that ¡°a number of
According to him as well as other members of the parliament in the automotive sector, currently the automobile industry is subject to the administration of ¡°too many bosses.¡± Automobile manufacturing, sales and distribution and aftermarket service are simultaneously controlled by at least a dozen different government departments.
As a result, various policies and regulations have been released which overlap and sometimes contradict one another. The classic case is that an OE manufacturer has to undergo three different government institutions to certify their vehicle products, incurring unnecessary cost and wasting valuable time in launching new products.
Moreover, relevant policies and regulations have failed to be implemented due to either immaturity or lack of enforcement mechanisms. It is a known fact that
The problems facing
It may take some time before auto manufacturers in