National Development and Reform Commission, Circular Concerning the Opinion on Adjusting the Structure of the Motor Vehicle Industry

Issued: December 20 2006

Main Contents: The Circular states that the investment entry criteria for the establishment of new whole motor vehicle projects shall be raised. Whole motor vehicle manufacturers intending to establish sub-plants in a different region shall have a sales volume of motor vehicles for the preceding year of 80% or more of the approved production capacity.

If the production capacity has not been approved or filed for the record, the sales volume of motor vehicles for the preceding year shall not be less than: 100,000 units for sedans; 50,000 units for sport utility vehicles (SUVs); 50,000 units for multi-purpose vehicles (MPVs); 80,000 units for other passenger vehicles; 10,000 units for heavy cargo vehicles; 50,000 units for medium cargo vehicles; 100,000 units for light trucks; 100,000 units for mini trucks; 5,000 units for large and medium buses; and 50,000 units for light buses (Section Three).