Recalling Faulty Vehicles

Chinese car makers often hesitate to issue recalls for defects, but that may soon change

Li Baoquan, a Beijing citizen, envies car owners in the United States because their vehicles can be recalled upon discovery of a defect. Chinese consumers are not so fortunate.

Li says his new Chery car has sprung an oil leak. He went to the car dealer and discovered similar claims by many other car owners. The dealer can offer free repairs within the warranty period, but beyond that car owners have to pay out of pocket. In the United States, a faulty model would be recalled no matter what.

Luckily, Li's car is under warranty, but he still worries about other possible defects. The Management Regulations on Recalling Faulty Vehicles will be implemented on January 1, 2013, much to Li's relief.

"Eventually, China will have the same laws regarding car recalls as in the United States, and this is undoubtedly good news for consumers," he said.

Jia Xinguang, a senior independent analyst on the automobile industry, says that despite China's status as the world's biggest car market, the country is lacking adequate laws when it comes to recalling faulty vehicles. After eight years of effort, car recall has become national law, a reflection of the government's attitude toward bettering the auto market.

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