Just as it happened with cars like Audi, Mercedes, etc., Toyota’s Lexus will also have to go through the hostile probe by NDRC and CADA. According to the statement issued by Toyota, the regulatory board will be conducting a series of tests on the various parts of the car before allowing the Lexus models to hit the showrooms. This is not the first time that the National Development and Reforms Commission (NDRC) and various other regulatory bodies of China pushed car models to the brink of tests before allowing them into their markets.
As a part of the elaborated statement, the National Development and Reform Commission will conduct a series of probes taking a close look at the various parts of the Lexus model. The probe will be conducted by NDRC and China Automobile Dealers Association (CADA) in collaboration. CADA has been conducting tests on a variety of cars since the month of April.
As a part of the initial survey, the officials from CADA and NDRC inquired about the various parts of Lexus and the working technique for it. According to the major market analysts, this can easily be stated as a policy by the Chinese government to abolish the monopoly management for Global car companies. The Chinese Government enacted the anti-monopoly act back in the year 2008 and since then a variety of industries have been affected.
It was earlier this week when the Chinese Regulatory board issued a notice for car makers like Volkswagen and Fiat for practicing monopoly. According to the law under which the notice was served, the car maker can be fined up to 10% of their local annual revenue in China. The general perception is that since China is the world’s largest car market, the government is using this opportunity to earn more from foreign investors.
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