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China to tighten rules for new car tech amid quality concerns
A nationwide inspection drive could prompt some consumers to pause purchases, dealers and analysts say.
China is tightening market access for new car products and technologies as regulators move to address quality and safety concerns, a move expected to weigh on sentiment in the auto sector. According to SCMP Economy, the Industry and Information Technology vice-minister said new auto products and technologies would be barred from entering the market unless they pass stricter approval procedures.
The campaign centers on assessing the quality of Chinese-made cars and cracking down on hi-tech offerings used to support sales as the overall market shrinks. SCMP Economy reported that the crackdown comes after incidents drew public attention tied to concerns about vehicle quality and autonomous driving technology.
Regulators cited “reckless innovative designs” installed in vehicles without sufficient testing and verification, SCMP Economy said. An independent analyst in Shanghai also tied the regulator action to accidents and growing consumer complaints, adding that oversight will force automakers to shift from upgrading intelligence features to ensuring quality.
The announcement also raises the risk of delayed demand, as some consumers may shelve purchase plans ahead of tighter scrutiny, according to SCMP Economy. Dealers and analysts cited a bearish outlook for China’s auto sector, with the uncertainty potentially extending to the companies and sellers dependent on new car sales.