Regulators will focus inspections on areas including durability and production consistency, as well as driver-assistance and artificial intelligence features in electric vehicles.
China is intensifying scrutiny of car production standards as Beijing tightens oversight of rapid development cycles that have underpinned a domestic price war and sparked concerns about vehicle safety.
Regulators will focus inspections on areas including durability and production consistency, as well as driver-assistance and artificial intelligence features in electric vehicles, according to a joint directive from four of China’s top bodies, including the Ministry of Industry and Information Technology and the State Administration for Market Regulation (SAMR).
The agencies are also targeting structural designs to assess whether cars are built in a way that’s intuitive for drivers to operate and can withstand extreme scenarios, it said. That’s in line with the imposition of tougher standards on batteries, advanced driver-assistance technology and door handles.
The clampdown reflects concern among policymakers that the ultra-compressed development times in China, where new models are brought to market in under two years, may tempt manufacturers to cut corners on safety and testing. With Chinese automakers rapidly expanding into Europe, Latin America and Southeast Asia, a safety scandal or other quality issues could tarnish their reputation and risk derailing the industry’s broader ambitions to dominate overseas markets.
The new inspection regime will include surprise spot checks of assembly plants, component suppliers and dealerships. Third-party testing laboratories, which have faced immense pressure fast-track approvals, will also be inspected. Any company caught issuing fraudulent reports or ignoring design risks faces immediate license revocation.
Under the new mandate, companies determined to have fallen short of standards or manufacturers that receive numerous consumer complaints risk having their production approval suspended or face mandatory recalls. The government can also have local traffic police suspend vehicle registrations, effectively halting customer deliveries.
Regulators said the new measures are intended to help establish a unified and effective regulatory framework for the industry, curb “irrational” competition and improve the governance of the automotive sector. They also aim to establish sustained coordination among government agencies, improve production stability as well as vehicle quality and safety, and thereby promote the industry’s sustainable development.
Source: Bloomberg
