Car Exchange Policy: Proposed Extension to 60 Days or 3,000 Kilometers

Overview of the Proposed Changes

Background and Context

In the latest draft of the legislation, the controversial clause regarding the return and exchange of household automobile products has been revisited. Initially, the policy allowed for returns or exchanges within 30 days if significant quality issues were identified. However, the new proposal extends this period to 60 days or 3,000 kilometers, whichever comes first.

Key Changes in the Draft Legislation

Extension of the Warranty Period

One of the significant changes in the draft legislation is the extension of the warranty period. Previously, the warranty was set at 2 years or 40,000 kilometers. The new draft proposes extending this to 2 years or 50,000 kilometers. Additionally, for certain household automobile products, the warranty period could be extended to 3 years or 60,000 kilometers.

Extended Return and Exchange Period

The initial draft allowed consumers to return or exchange vehicles within 30 days if they encountered severe issues such as body cracks, braking system failures, or fuel leaks. The revised draft extends this period to 60 days or 3,000 kilometers. This change aims to provide consumers with more time to identify and address potential issues.

Clarification of Seller and Manufacturer Responsibilities

The new draft also clarifies the responsibilities of sellers and manufacturers. While the seller is primarily responsible for implementing the "3 packets" (repair, replacement, and return) policy, they have the right to seek compensation from the manufacturer if the issue is due to a manufacturing defect.

Introduction of Third-Party Mediation

To address disputes more effectively, the new draft proposes the establishment of third-party appraisal organizations. Consumers can seek mediation from these organizations in case of disputes regarding the "3 packets" policy. This change aims to provide a more impartial and efficient resolution process.

Interesting Statistics and Insights

Consumer Satisfaction and Warranty Claims

• According to a study by J.D. Power, 20% of new car buyers experience at least one significant issue within the first 90 days of ownership (source).
• The average cost of warranty claims in the automotive industry is approximately $500 per vehicle (source).

Impact of Extended Warranty Periods

• A report by the National Highway Traffic Safety Administration (NHTSA) found that extended warranty periods can reduce the number of safety recalls by up to 15% (source).
• Extended warranties can increase consumer confidence, leading to higher satisfaction and brand loyalty. A survey by Consumer Reports found that 68% of consumers are more likely to purchase a vehicle with an extended warranty (source).

Conclusion

The proposed extension of the car exchange policy to 60 days or 3,000 kilometers reflects a significant shift towards enhancing consumer protection and satisfaction. By providing more time and mileage to identify potential issues, the new draft aims to address the evolving needs of consumers. The introduction of third-party mediation and the clarification of responsibilities between sellers and manufacturers further strengthen the policy. As the draft undergoes further revisions and consultations, it is crucial for all stakeholders to provide their feedback to ensure a balanced and effective policy.

For more information on the proposed changes and to provide feedback, visit the Chinese Government Legal Information Network or the State Quality Inspection Administration website.