The new "Regulations on the Maintenance of Motor Vehicles" has been in effect for over two months, but industry experts at a recent joint meeting held at the Shanghai Information Center expressed concerns about its effectiveness. They pointed out that without clear implementation guidelines, certain problematic practices within the sector remain unaddressed. Specifically, the regulations have not yet resolved four key issues stemming from monopolistic control over vehicle parts and high repair costs.
Problem 1: The 4S Shop Parts Monopoly Remains Unresolved
Historically, car manufacturers were required to release maintenance manuals and diagnostic data after launching new models, allowing all repair shops to service them. However, with the rise of joint-venture companies, many now withhold this information, granting their authorized service centers exclusive repair rights. As a result, manufacturers have gained control over both the pricing and availability of parts, leading to exorbitant costs. For instance, some reports suggest that the cost of parts sold by 4S shops can be as high as double the price of a new vehicle. This has sparked growing frustration among consumers who feel they are paying too much for basic repairs.
According to Qi Ruilin, a senior policy analyst at Shanghai Xiangtong Automotive Consulting, the new regulations attempt to address this issue by requiring manufacturers to publicly disclose technical data and labor hour quotas within one month of a new model’s launch. While this could promote fair competition, he remains concerned about the lack of specific enforcement mechanisms. Without clear guidelines on what data must be released or penalties for non-compliance, some manufacturers may still avoid transparency.
In contrast, foreign practices often involve two sets of technical information: one for authorized dealers and another for independent repair shops. This ensures that consumers have access to repair options beyond factory-controlled networks.
Problem 2: Fake and Substandard Parts Continue to Flood the Market
Another major concern is the difficulty in distinguishing between genuine, sub-factory, and counterfeit parts. In China, there is no standardized testing process to verify the quality of spare parts, making it hard for consumers and repair shops to identify which parts are safe and reliable. Sub-factory parts—while not officially endorsed by the manufacturer—are often cheaper and of acceptable quality. However, counterfeit products, known as “three-no†items (no production license, no quality certification, no trademark), continue to circulate, deceiving buyers and undermining trust in the market.
Qi Ruilin emphasized that in many countries, auto parts must pass state-mandated tests before being sold. Only those that meet quality standards are labeled as “sub-factory parts,†while untested or unsafe items are strictly prohibited. In China, the absence of such a system makes it challenging to regulate the market effectively.
Problem 3: Repair Labor Charges Remain Unclear
Even though the regulations aim to protect consumer rights by setting transparent labor charges, the current framework lacks clarity. Repair shops often set their own rates, leaving consumers with little recourse if they feel overcharged. While the regulations allow for standardized labor hours based on industry associations or manufacturer guidelines, the final decision still rests with the repair operator.
This ambiguity leaves room for potential abuse, as operators may charge more than the standard rate without clear justification. Consumers are left with limited options unless they choose to compare prices across different repair shops.
Problem 4: Uncertainty Surrounding Used Car Maintenance Chains
Finally, the lack of clear procedures for establishing used car maintenance chains remains a challenge. According to the regulations, new car maintenance chains must apply to local road transport authorities. However, used car maintenance networks fall under a different regulatory body—the Ministry of Commerce—creating confusion about where to apply and how to coordinate approvals.
Qi Ruilin suggested that the two ministries should work together to streamline the process and reduce bureaucratic hurdles. This would help support the growing used car market and ensure that maintenance services are accessible and efficient.
Overall, while the new regulations represent a step forward, their success depends heavily on the development of detailed implementation rules. Without proper enforcement and coordination, many of the intended benefits may not be realized, and industry challenges will likely persist.
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