China Automotive Antitrust Achieved Certain Effects
Posted: 09/17/2014 10:09:45 Edited: 09/17/2014 11:09:45 Clicks: 2410
Recently, automobile anti-monopoly once again becomes a hot issue. Although the media questioned that the price adjustment for vehicles and spare parts of car enterprises was just for making a show, in reality, the antitrust of automotive industry has achieved certain results.
A few days ago, the Shanghai Municipal Government Information Office informed that the pilot program of parallel import drafted by Shanghai Waigaoqiao Automobile Exchange Market was reported to the Ministry of Commerce for review. If this pilot program in Shanghai FTA is successful, the future price of imported cars will be cheaper by over 15%.
Monopoly can be roughly divided into the following two categories: limited vehicle prices, namely horizontal monopoly, and limited spare parts and maintenance prices in 4S shops, namely vertical monopoly. So to speak, the introduction of parallel car imports shows the phase effects of recent antitrust in automotive industry. The next step is to see how to break the monopoly of spare parts channel of OEM factories.
The vertical monopoly characteristics of China's auto industry are very obvious. OEM factories have realized strictly control of spare parts so that car parts can not be normally flowed. The most direct manifestation is that consumers are very difficult to get original spare parts from Auto Parts Cities, although there are a lot of them. The main cause of monopoly is closed spare parts certification system. If we can not break the dominance of OEMs, the current dropping prices may just their expediency.
According to the "Guiding Opinion on Seeking the Promotion of Automotive Repair Industry to Upgrade and Improve Service Quality" (hereinafter referred to as "Opinion") released by the Ministry of Transport website, it is encouraged for the free flow of auto repair parts. Original parts manufacturers are favor for providing the original plant parts to after markets, as well as independent parts with their own brands, trademarks or logos. In addition, authorized repair service companies are encouraged to resell and provide original parts. Undoubtedly, if the "Opinion" is formally implemented, prices of automobile spare parts will also significantly reduce, with guaranteed quality.
A few days ago, the Shanghai Municipal Government Information Office informed that the pilot program of parallel import drafted by Shanghai Waigaoqiao Automobile Exchange Market was reported to the Ministry of Commerce for review. If this pilot program in Shanghai FTA is successful, the future price of imported cars will be cheaper by over 15%.
Monopoly can be roughly divided into the following two categories: limited vehicle prices, namely horizontal monopoly, and limited spare parts and maintenance prices in 4S shops, namely vertical monopoly. So to speak, the introduction of parallel car imports shows the phase effects of recent antitrust in automotive industry. The next step is to see how to break the monopoly of spare parts channel of OEM factories.
The vertical monopoly characteristics of China's auto industry are very obvious. OEM factories have realized strictly control of spare parts so that car parts can not be normally flowed. The most direct manifestation is that consumers are very difficult to get original spare parts from Auto Parts Cities, although there are a lot of them. The main cause of monopoly is closed spare parts certification system. If we can not break the dominance of OEMs, the current dropping prices may just their expediency.
According to the "Guiding Opinion on Seeking the Promotion of Automotive Repair Industry to Upgrade and Improve Service Quality" (hereinafter referred to as "Opinion") released by the Ministry of Transport website, it is encouraged for the free flow of auto repair parts. Original parts manufacturers are favor for providing the original plant parts to after markets, as well as independent parts with their own brands, trademarks or logos. In addition, authorized repair service companies are encouraged to resell and provide original parts. Undoubtedly, if the "Opinion" is formally implemented, prices of automobile spare parts will also significantly reduce, with guaranteed quality.
