China plans to straighten out auto export
(Xinhua)
Updated: 2006-07-13 14:02
Fears that China's automobile industry could be harmed by a cut-throat export
market have prompted the government to tighten control of the market.
A
new regulation, to be issued next year, aims to raise the access standard for
exporters and phase out poor performers, said Zhang Ji, of the Commerce
Ministry.
The move comes in response to surging car exports that have led
to declining profits and falling prices.
Customs statistics show vehicle
exports rose from 20,000 in 2002 to 173,000 last year.
In the first four
months of this year, the country exported 87,000 vehicles, more than half of
last year's total.
In 2005, the value of complete vehicle exports
reached 1.58 billion yuan, up 158.4 percent from the previous year.
The
remarkable sales prompted a boom in export dealerships and fierce competition as
exporters lowered prices, the Guangzhou-based 21st Century Business Herald has
reported.
Of the 1,025 registered exporters last year, more than 600
exported fewer than 10 complete vehicles each, and 160 just one each.
Meanwhile, the price of complete cars exported dropped from an average
16,100 U.S. dollars in 1990 to 9,100 dollars last year. The price of a
sedan fell from 8,700 dollars last year to 7,100 dollars in the first four
months of this year, according to the ministry data.
Zhang said the
country needed to standardize the cost of exports in order to prevent a drastic
fall in prices.
The costs of environmental protection, land, and social
responsibilities should be calculated into prices, he said.
Fu Peizhao,
a senior engineer with the China Chamber of Commerce for Import and Export of
Machinery and Electronic Products, agreed, saying inattention to after-sale
service and spare parts supply would damage the Chinese industry's image.
The government was also reported to be reviewing penalties for
enterprises engaging in unfair pricing.
(For more biz stories, please visit Industry Updates)
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