Chinese car companies entering Europe are blocked or affected by bus reform

According to Bloomberg News, after the new Chinese version of the bus catalog locked its own-brand models, the European Union Chamber of Commerce stated that in response, the Chinese car companies' plans to enter Europe may be blocked.

On the evening of February 24, the official website of the Ministry of Industry and Information Technology of the People's Republic of China released the “2012 Catalogue of Selected Vehicles for Official Vehicles of the Party and Government Organs (Draft for Soliciting Opinions)”. The official car purchase model catalogs are all self-owned brand models, including the joint venture's own brand models and foreign models all lost. According to data provided by Guotai Junan Securities, 80% of China's buses currently are foreign brands, and Volkswagen Audi accounts for one-third of government cars and state-owned enterprises.

On February 27, Dirk Moens, the secretary-general of the European Union Chamber of Commerce announced in Beijing by telephone: “An industry should not expect to be welcomed outside of the country if the country begins to take remedial measures on this industry.” Ding Kai warned that The European countries may not repeat the situation of opening up the investment market to China Great Wall Motors and Geely Automobile. The European Chamber of Commerce will work with members to assess the impact of China's bus reform and may formally urge European governments to take countermeasures.

Two months ago, the Chinese government cancelled the encouragement policy of foreign investment in the automobile industry. This time, the procurement of buses was completely inclined to independent brands, which had a cumulative negative effect on foreign car companies.

In recent years, the momentum of Chinese car companies entering Europe has gradually emerged. After Geely Automobile acquired Volvo Cars in 2010, it also started to enter the UK market through Manganese and Bronze Holdings, and researched and sold cars in Italy through purely networked sales. Great Wall Motor’s Bulgarian plant opened on February 21 this year and became the first official factory in China for European automakers. To some extent, some pressure on the local car companies in Europe, Renault even called the Great Wall as a "competitor."