CHINA'S restrictions on the buying of foreign cars mean long-term benefits rather than problems for dealers in the vehicles, says a Volvo agent.
Only a select few in China can buy foreign cars. They need a licence to buy foreign cars for fleet transport or joint ventures.
''This prevents a floodgate opening . . . They [Chinese] are prising the door open slowly, and that's the right way of doing it,'' said Mr Chris Thomas, general manager of Cimbria Motors, part of Jebsen and Co, which is Volvo's sole agent in Hongkong andsouthern China.
The restrictions would encourage the development of the China-made vehicle market, which would boost economic growth, said Mr Thomas. That, in turn, would lead to the expansion of the foreign car market.
Mr Thomas was speaking at the opening of Volvo's first mainland service centre.
The Shenzhen Volvo Vehicle Service Centre, which provides repair and after-sales service, was set up in the face of intense competition from other carmakers, according to Cimbria Motors director Uwe Schmidt-Rosemann.
He said the new facilities would also meet the demand for after-sales service from China's growing number of car-owners.