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China to Ask Automakers to Reveal Information on Auto Spare-parts and Repairs

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Published on : Oct 09, 2015

According to the Chinese government, China is willing to ask the automakers to disclose more information on auto spare parts and repairs from next year. The information from automakers would include documents such as spare part catalogues, repair manuals, and vehicle repair procedure documents. This would enable the consumers and domestic auto repair shops to quickly fix the auto damages and repairs. As per the information from Chinese government, the official auto dealers will be put under pressure to reduce the charges of auto repair services and spare parts during the period when sales of new vehicles come to a halt. 

Yale Zhang, the managing director at Automotive Foresight, said that China is aiming to take these steps in order to stabilize the original dealership prices or rather make the dealership prices more reasonable to the buyers. Such documents would simplify the tasks of third-party auto repair shops to identify suitable spare parts for vehicles, stated Zhang. A new policy has been announced by eight government departments and ministers to support this task. Soon after automakers such as Nissan Motor and Daimler AG were fined in 2014, many other Chinese auto makers had to reduce their prices of auto repair and spare parts services. 

The prices of auto repair services and spare parts in China are often noted to be higher as compared to many other markets. For the first time since the China auto market took off in 1990, auto sales were flat in China during the first half of 2015 and are expected to drop further by the end of the year. As per the study from J.D. Power & Associates in July, average revenue per customer from the after-sale services for luxury auto brands dropped from 4,288 Yuan in 2014 to 3,480 Yuan in 2015. The mass auto market registered a downfall from 1,710 Yuan in 2014 to 1,558 Yuan in 2015.