The government has issued rules requiring automobile dealerships to be authorized by an automaker, or a licensed general distributor, to better regulate the market.

The regulations, effective for all passenger vehicles from April 1, gave the country��s existing auto sellers a 6-month period to become authorized dealerships, a statement posted on the Ministry of Commerce's Web site said.

The rules would then be extended to all vehicles, except some designed for specific tasks, from Dec. 1, 2006, the statement said.

"The move is aimed at further regulating the (auto sales) market and will give automakers a larger say in determining their own dealerships," Kang Yingjie, an official at the ministry's department of treaty and law, said.

The latest rules forbid unauthorized or unqualified firms from selling automobiles or providing after-sales services.

Auto firms or their general auto distributors in China would only be allowed to sell vehicles to authorized dealerships, and not sell autos directly to customers, the ministry��s statement said.

The general auto distributors, authorized by auto firms to select qualified dealerships, should be able to carry out market research, sales promotion, network building, as well as training dealerships, the statement said.

The rules could eliminate some unqualified dealerships within a certain period of time, Kang said.

But the restructuring of the national distribution system would be gradual and wouldn't directly affect the country's auto sales, he added.

The fast development of China's auto market in recent years had led to an increasing number of auto dealerships across the country. A large portion of them were unauthorized, which had created difficulties for regulators and also hurt consumers, Kang said.

Yale Zhang Yu, an auto analyst at CSM Worldwide, said he believed the new rules would help China adopt the concept of brand sales.

"The model to provide customers with both sales and after-sale services at authorized dealership stores will become a trend in China in the long run," Zhang said.

Auto makers would be able to build a dealership network with unified design and standards, he said.

In recent years, auto firms such as General Motors and Honda Motor Co. had begun selling autos in China through selected service centers, which had been well received, he said. 

Shenzhen Daily-Agencies