Foreign carmakers face Beijing's probe on spares
Government said to be examining if prices of spare parts are being artificially jacked up
Beijing is examining whether foreign car manufacturers are preventing component makers from selling spare parts to any dealers besides those authorised by the car companies, people familiar with the matter said.
The National Development and Reform Commission, the country's apex body for economic planning, is probing practices at Germany-based Daimler's Mercedes-Benz, Volkswagen's Audi and Bayerische Motoren Werke, and Japanese carmakers to see whether prices of spare parts are being artificially boosted, they said, asking not to be identified.
Mainland state media has criticised car producers from abroad for overcharging consumers for spare parts.
The Transport Ministry released a proposal last month to encourage the "free flow of auto repair parts" and urged vehicle makers to provide original parts to independent mechanics.
BMW and Volkswagen declined to comment, while representatives at Mercedes said they were not aware of an investigation against the company.
The NDRC did not reply to a fax seeking comment.
While figures are not publicly available, the spare-parts business only makes up a small part of automakers' profit, according to John Zeng, managing director at LMC Automotive research company in Shanghai.