China to extend 'parallel import' car scheme to Tianjin
Unauthorised dealers in Tianjin allowed to sell imported vehicles in bid to rein in prices
A trial programme allowing unauthorised dealers to sell imported cars would be extended to the northern city of Tianjin , state media said yesterday, as the government moves to rein in high-end car prices.
Cars sold by unauthorised dealers are often cheaper than those sold by dealerships authorised by car companies, but come with little or no after-sales service or quality guarantee.
The so-called parallel imports scheme was first launched in Shanghai's free-trade zone in February.
The programme would be extended to Tianjin in June, the overseas edition of People's Daily, the ruling Communist Party's official newspaper, said.
There is already a flourishing grey market in imported cars centred around Tianjin.
Publicly, Beijing says its pilot scheme will promote competition and give consumers more choice, but people close to policymakers say it is one of several measures aimed at lowering car prices on the mainland, which are far higher than elsewhere.