Foreign automakers profiteering in China: CCTV

BEIJING - China's state broadcaster, China Central Television (CCTV), has accused some foreign auto makers, including Land Rover, Subaru and Audi, of profiteering and called for revision of auto market regulations.

A common rear end accident costs the owner of an imported Range Rover 100,000 yuan ($16,313) to fix, because of expensive parts on which the manufacturer has a monopoly, while the car costs a little over 1 million yuan.

Likewise, owners of imported Subaru and Audi also have to buy parts at a high price, according to Tuesday's CCTV program "Half-Hour Economy".

It also takes time to get parts because they can only be ordered from foreign producers, according to the program.

Industry insiders said duties and taxes on imported car parts, usually about 29 percent, do not make a big contribution to the prices.

The program blames the 2005 guideline on car sales management for excessive prices. The regulation allows foreign car makers to set up their own franchisees to handle sales, after-sales service and the supply of spare parts, which gives them monopolies.

The program urged the authorities to modify the law and and correct the unfairness.