CRI听力:New Rules for Government Car Purchasing

The Audi A6L, a sleek piece of high quality German engineering and car of choice for government officials across China. However government officials may soon have to swap the Audi for a local brand.

As of March the 9th a new regulation governing official car purchases is set to come into force, with preliminary lists revealing that all of the 419 cars officials are allowed to purchase are to be home-grown brands.

Lei Xing, executive managing editor at the China Automotive review sees the motivations behind the new policy as being three-fold.

"I think one, the government is trying to set an example. Two, it's definitely a support for the independent brands. And three, there's been a public outcry against what sort of vehicles the government are going to use."

So what of the domestic alternatives then? BYD is one of China's major domestic car producers; do they have what it takes to appeal to officials' tastes? We met with Beijing BYD showroom manager Lin Zhang to find out.

"The main groups purchasing BYD cars are those doing small business or are migrants living in Beijing. Those are the main groups. Our customers are the kind of people who don't really have that much money but still want to fulfill their dream of having their own car. The idea of BYD competing with foreign brands is still a bit unrealistic. BYD is mainly competing with other domestic brands, and maybe a couple of low end joint ventures. "

With the majority of Chinese brands currently unable to produce cars that are not only of a high enough standard but, more importantly, are perceived as such, one domestic brand may be able to step into the breach.

The red flag: once used to ferry Mao and other members of the political elite before the entry of foreign brands to the market. Recent Red Flag productions have not exactly been a hit with the public, with the HQ3 produced in 2006 selling less than 500 models in its first year.

Red Flag may yet come to the rescue of officials with the C131, a model based on none other than Audi's A6. However, with the C131 yet to be released, many analysts remain skeptical as to whether the new regulations, even once enforced, will be enough to persuade officials to part ways with foreign brands. It is likely to only be over the long run that Chinese domestic cars are able to shake off their cheap and cheerful image and begin appealing to more upmarket groups.

For CRI, I'm Natalie Thomas.