China Investigates Foreign-Car Pricing; Regulator Asks Dealers Association for Data; on the Lookout for Anticompetitive Practices

August 14, 2013 Leave a comment

August 14, 2013, 12:19 a.m. ET

China Investigates Foreign-Car Pricing

Regulator Asks Dealers Association for Data; on the Lookout for Anticompetitive Practices

SHANGHAI—The China Automobile Dealers Association has been asked to compile prices for foreign cars sold locally so any overcharging can be exposed, the organization said Wednesday. The National Development and Reform Commission wants to see whether foreign car makers are manipulating prices or setting minimum retail prices for dealers, said Luo Lei, the association’s deputy secretary-general, noting that those practices are illegal.“The NDRC is checking price information in a variety of industries and the auto sector is just one of the industries,” Mr. Luo said. The association started collecting the information last year, he said.

NDRC officials didn’t immediately respond to a request for comment.

The association data “covers all foreign cars including imported cars and locally built vehicles by joint ventures.” Indigenous brands aren’t covered, Mr. Luo added.

The revelation of the investigation follows official disclosures into the pricing of pharmaceuticals and baby formula. It isn’t clear whether the motor-vehicle inquiry will result in further action.

Last week the NDRC fined six dairy companies 669 million yuan ($109 million) for anticompetitive practices.

Filed under Macro Trends

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