China plans to force government officials to stop buying foreign brands like Volkswagen and Toyota and buy only locally branded cars according to a report in the Wall Street Journal (WSJ).
New proposed guidelines released over the weekend are part of an attempt to bolster domestic industry.
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China’s Ministry of Industry and Information Technology has posted a list of 412 vehicles that are likely to be approved for purchase by government agencies this year. The list did not include any foreign models. The ministry said the list is open for public comment until 9 March.
However, the impact will be mostly symbolic, as government officials’ purchases make up a small part of what is now the world’s largest auto market. In a statement, Volkswagen said “the economic consequences of these new regulations are limited.
“The majority of the Volkswagen Group China’s sales are conducted with private costumers.” It added that sales of government vehicles are in a lower single-digit percentage range.
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