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China to focus less on car manufacturing industries

By SYF77 on 05 Jan 2012

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China has taken steps to reduce foreign investment in car manufacturing. The change ends the seven years of foreign-investor benefits including reduced tariffs on imported plant equipment The country will shift its focus on nurturing strategic new industries to make its manufacturing more sophisticated and be more competitive globally, according to a statement by the National Development and Reform Commission.

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However, foreign investment in more fuel-efficient vehicles will still be encouraged. “It might be more difficult for carmakers to get approval for new plants in the future unless they have an investment in new-energy vehicles,” said Jenny Gu, a senior market analyst at LMC Automotive in Shanghai. The decision to continue encouraging investment in new- energy vehicles also comes as the world’s largest polluter pushes for more alternative-energy vehicles on its roads. The Chinese government has set a goal of 1 million electric-powered vehicles on the road by 2015, according to the Ministry of Science.

General Motors, the biggest automaker in China, is not worried about the new measures. “We expect the new guideline to have minimal negative impact on GM’s future plans in China," the company said in a statement. Volkswagen also stated that it will go ahead with its plans: “VW will work toward fulfilling its expansion plans in China, which include actively developing electric cars and new-energy vehicles, and continue to bring in fuel efficient technologies and products”, read the Wolfsburg-based carmaker’s statement.

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SYF77
Written by SYF77
I have been a car fanatic since 1989, when my father was changing our family car then to a Toyota Corolla 1.6 GL fitted with a Twin Cam 16 valve engine that was carburetor-fed, a big deal back in those days. The automobile technology and industry fascinates me and I hope to broadcast these interesting developments to everyone out there through this blog.



 
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