Industry and data experts have stated that – despite certain difficulties in the auto industry – the sweeping new auto warranty, as well as consumer protection laws in China which came into effect in 2013 are having an impact on the world’s biggest and maturing auto market. The General Administration of Quality Supervision, Inspection and Quarantine released the latest figures which showed that automakers made a record 134 recalls of 5.3 million vehicles in 2013.
The recent figures showed an increase of 65.8 percent from 2012. When it comes to recalls, foreign brands are in the lead, but seven carmakers from China recalled around 450,000 vehicles, which is an increase of 36 percent compared to figures in 2012. According to experts, the increase in the number of recalled vehicles is the result of a regulation governing defective cars which came into effect on January 1, 2013.
The director of Huijia Law Firm, Qiu Baochang said, “The recall regulation has led to increasing transparency in product quality”. Qiu went on to say that this means that a company can end up paying hundreds of million yuan for violation.
In addition to that, dealers have to repair or replace defective vehicles during the warranty period and must carry heavy penalties for violations.
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