China to introduce Turkey's 6-month rule for vehicle sales

China is working on a new regulation to address price competition and overproduction issues in the automotive market. This regulation aims to prohibit the resale of brand-new vehicles for six months from the date of their initial registration. This will prevent vehicles from immediately entering the second-hand market.

This new policy, prepared by the Chinese Ministry of Industry, will also affect the sales strategies of dealerships. The methods used by dealers to first register vehicles and then offer them for resale will be restricted. Major automakers such as Chery and BYD will be held directly responsible for any violations to ensure their dealers comply with these rules.

A publication belonging to the China Association of Automobile Manufacturers stated that this regulation would be the Chinese government's first official intervention in the automotive sector. This step came following warnings from Great Wall Motor CEO Wei Jianjun and criticisms from a Communist Party newspaper. The Chinese cabinet also announced that they would bring competition in the local automotive sector under control.

A similar practice had previously been implemented in Turkey. The Ministry of Trade had introduced the 6-month/6,000-kilometer rule to prevent new vehicles from being sold as second-hand. This regulation aimed to prevent dealers and galleries from registering new vehicles and offering them for sale at higher prices.

News Source: 12punto