Unscrambling the "Three Guarantees Law" in the Eyes of Auto Parts Enterprises


With the expansion of China's automobile production and sales scale, the automobile industry has become an important pillar of China's national economy. However, due to the absence of relevant laws and regulations, especially the lack of regulations in the automobile consumption market, the chaos in China's auto consumption market has re-emerged, which has affected the healthy development of China's auto industry, and it is time to rely on laws to regulate. Finally, the "Three Guarantees Law" of cars called for 7 years on October 1 this year will be formally implemented.

In this method, the three-pack range of components includes the engine, transmission two major assembly, steering system, brake system, suspension system, body, front / rear axle, and 13 vulnerable parts.

The "Three Guarantees Law" has made clear and inflexible provisions for the components and parts in these areas:

The new standard stipulates that consumers must choose to replace the engine for free, since the quality of the main parts of the engine and transmission will be affected within 60 days or 3,000 kilometers (whichever comes first) from the day when the vehicle is issued by the seller. transmission.

In the period of validity of the automobile three packs, after the engine or transmission has been replaced for two times in total, or after the same main part has been replaced by two times due to quality problems, it cannot be used normally (the replacement times of the assembly and main parts are not double counting), Consumers can make changes or returns to sellers and sellers should be responsible.

In addition, the same main parts of the steering system, brake system, suspension system, front/rear axle, and vehicle body cannot be used normally due to quality problems after 2 cumulative replacements, and they can also be changed or retired.

Obviously, strict regulations on parts and components must have a profound effect on the industry. In this way, China's parts companies began to interpret the “Three Guarantees Law”, and even some companies shouted the fear that the wolf really came. Of course, this is only for those who take advantage of counterfeiting to gain market interest. However, the implementation of this "Three Guarantees Act" will indeed bring some challenges to auto parts companies.

The Challenge of the "Three Guarantees Law"

The "Three Guarantees Law" brings about two major challenges to China's auto parts enterprises.

The first is quality. The “Three Guarantees” method specifies the quality of automotive parts. Parts used for the repair of household automotive products should be qualified parts provided or approved by the manufacturer, and the quality should not be lower than that of a production line for a domestic automobile product. This will be a big challenge for companies whose technical level and quality control capabilities are relatively different from the original ones.

The second is the market. During the Three Guarantees period, most parts can be returned within 4S points for free. This makes the owner who originally wanted to flow out of the 4S shop return to the 4S shop again, causing a certain market impact to the repair shop outside the 4S shop. However, judging from the current market situation of China's auto parts companies, the repair shop outside the 4S shop is the center of gravity. This will inevitably affect the market performance of these parts and components companies. However, according to the development experience of the US automotive aftermarket, with the increase in the number of possessions and cars, car service companies other than 4S stores are the center of the automobile aftermarket. Therefore, the effect of the "Three Guarantees Law" on the market will not be too great.

"Three Guarantees" Forces Development of Parts Industry

The clear and inelastic provisions of the “Three Guarantees Act” have forced the entire automotive industry, including parts and components, into a decisive trend.

In response, Huang Guohui, general manager of Guangzhou Dezhong Baofeng Auto Parts Co., Ltd., said: “At the beginning of the 1980s, the United States adopted a form of legislation to force auto parts suppliers and maintenance companies The improvement of satisfaction, technology, and quality, that is, this kind of compelling approach has resulted in the automotive industry in the United States. Therefore, we can also improve our respective companies under the supervision of the “Three Guarantees Law”. He mentioned the American Automobile Use Guarantee Law, commonly known as the "Lemon Law," which, as he said, is precisely such strict standards and regulations that have accelerated the normative process of the automotive market and helped the industry develop in a healthy and orderly manner.

In fact, the so-called "challenge" of the "Three Guarantees Law" or "forced action" is an opportunity from another perspective. To obtain a market, we must comply with relevant standards. This will inevitably enable relevant companies to improve their internal management, product technology, and quality. Some companies that are incapable or mainly fake and shoddy will be eliminated and returned to the industry. It is a healthy and orderly market. With such an environment and the market scale expected to reach 766 billion yuan in 2015, even if it is a wolf, it must be the guardian wolf for the survival of the fittest.

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