China carmakers urge foreign ownership cap to remain for 5 years

Beijing

CHINA should keep the 50 per cent cap on foreign ownership in local passenger-vehicle joint ventures (JVs) for at least another five to eight years to ensure Chinese carmakers are ready for full-fledged competition, according to the state-backed auto association.

The government can consider lifting the limit on different parts of the automotive industry according to their maturity, starting with the motorcycle industry in one or two years, followed by commercial vehicles in three to four years, Ye Shengji, deputy secretary general of the China Association of Automobile Manufacturers (CAAM), said on Saturday in Tianjin.