The Ministry of Industry and Information Technology has recently announced new policies for automobile manufacturers on the verge of being forced out of the market, Beijing News reported today. The policies are bad news for unsuccessful manufacturers, as they may very be left with no choice but to end business operations.
The MIIT cites statistics which show that there are over 1,300 vehicle manufacturers currently operating in China. According to the statistics, the currently possesses 171 automobile manufacturers, 120 motorcycle manufacturers and 135 three wheeled vehicle manufacturers.
The MIIT points out that a good portion of these manufacturers have either partially or totally halted production. Some of them are in a very dire state, with their production numbers extremely low. There are even some that currently report a production volume of zero. As China currently lacks minimum production quota policies, these manufacturers are allowed to continue to exist, severely influencing the normal balance of the market.
