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← Newsroom/Policy & safety

Chinese regulators crack down on “speed cars” as rapidly-developed cars cut corners on safety

Compiled by ADME Newsroom from 1 source

First reported by Chasing Cars · 8 September at 3:39 pm

Who's covering this — 1 article

Motoring press
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Image: Chasing Cars

The quick read

Full coverage

Chasing Cars·Motoring press·8 September at 3:39 pm

Chinese regulators crack down on “speed cars” as rapidly-developed cars cut corners on safety

Chinese authorities are throttling its nation’s carmakers’ breakneck development speeds. With Chinese cars typically developed in two years, not the three to five typical elsewhere, regulators are…

Read at Chasing Cars →

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The quick read

  • Chinese authorities are cracking down on 'speed cars' due to safety concerns.
  • Chinese cars are typically developed in two years, compared to three to five years elsewhere.
  • The crackdown will lead to increased development time for Chinese carmakers.
  • This may result in a shortage of new Chinese models in the Australian market.

For dealers: The crackdown on 'speed cars' in China may lead to a shortage of new models in the Australian market, affecting stock and ordering for Australian dealers.

AI-assisted summary of the coverage below — check the original reporting before relying on specifics.

ADME commentary

The ADME angle

Chinese authorities' crackdown on 'speed cars' will lead to a significant increase in development time for Chinese carmakers, resulting in a potential shortage of new models in the Australian market.

This shortage could lead to increased demand for existing models, allowing Australian dealers to maintain or even increase pricing and margin on Chinese-made vehicles.

What it means for stock and ordering

Australian dealers who currently stock Chinese-made vehicles may need to reassess their ordering schedules to account for the potential delay in new model releases, potentially leading to increased stockholding costs.

The increased development time will also lead to increased costs for Chinese carmakers, which may be passed on to Australian dealers and consumers, affecting pricing and margin.

Competitor response and marketing

Competitors to Chinese carmakers, such as Japanese and Korean manufacturers, may see an opportunity to increase market share in Australia as Chinese carmakers struggle to keep up with demand due to the shortage of new models.

Australian dealers who represent these competitor brands may be able to capitalize on this situation through targeted marketing and lead handling, highlighting the benefits of their brands' more established development processes.

Taking action

This week, Australian dealers can review their current stock and ordering schedules to identify potential risks and opportunities, and consider diversifying their brand representation to mitigate the impact of the Chinese carmakers' development slowdown.

Go deeper — ADME analysis

  • NVES and the FBT change: the two policies quietly reshaping what Australia buys →