"No automaker can ignore such a high penalty. The new regulations will greatly improve quality awareness among all automakers in China," said Jia Xinguang, an independent auto analyst in Beijing.
Statistics reveal that as of Monday, 480 batches of vehicles, totaling 8.99 million units, had been recalled in China, the world's largest automobile market.
Lacking quality administration and supervision, China has lagged behind Western countries in establishing a reliable vehicle recall system.
Figures show that in 2009, the United States recalled 517 batches of vehicles, consisting of 17.84 million units, Japan recalled 291 batches comprising 3.11 million vehicles. However, China, which replaced the US as the world's largest automobile market in 2009, only recalled 56 batches representing 1.36 million units.
"It's not reasonable that recalled defective vehicles only accounted for one-tenth of annual sales," Jia said.
Analysts also said the new regulations will bring more challenges to Chinese auto brands than their foreign rivals, as the US and European automakers have been familiar with recall systems worldwide for many years.
"We feel pressure as the technologies in Chinese vehicles are not as advanced as those of foreign brands. However, the new regulation will push Chinese automakers to put more effort and investment into technology and quality," said Yang Xueliang, spokesman for Zhejiang Geely Holding Group, a Chinese automaker based in Hangzhou, Zhejiang province.
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