China has decided to issue a new regulation to control car sales outlets. The regulation, which requires dealers to have authorization from car-makers before gaining a business permit from the government, will come into force from April the first. It also forbids manufacturers to sell products to consumers directly. So far, market reaction to the decision has been positive.

Among the nearly 30-thousand car sellers registered at administrations for Industry and Commerce across China, only 7 percent have been designated by manufacturers as outlets for their brands. Analysts say, for those potential buyers worried by possible traps in transactions, the new regulation will be a big relief.

A potential car buyer said, "This man just sprang out of nowhere and started his sales pitch on me. It made me feel very uncomfortable because I wasn't sure what I wanted to buy. Very often, these people can't show you anything to prove their qualifications, and what they promote is not quite what you want to know. It's very unprofessional and always makes me worry."

Many profit-driven outlets only care about sales. The idea of post-sales service wouldn't even occur to them. The few designated car sellers in China have warmly welcomed the new regulation.

The manager of Authorized BMW Outlet said, "Those unprofessional competitors and illegal operations will gradually be driven out of business because of the regulation. Consumers will be able to get double guarantees of quality and price when they buy from us authorized sellers. And for car-makers, they won't have to worry about disputes concerning vehicles brought onto market through illegal channels."

Under the regulation, major carmakers will review their designated outlets and report to the state authorities. The list of outlets will be released to the public before October. Many car-makers say they plan to increase the number of their designated outlets.

Source: CCTV