Car Recalls in China Are Rare for Domestic Brands

Last year carmakers recalled 11 million vehicles in China, but only 120,000 of them were domestic brands, the Financial Times reports.

Data from AQSIQ, China’s General Administration of Quality Supervision Inspection and Quarantine shows the percentage of all vehicle recalls involving domestic manufacturers rose from 3% in 2012 to 25% in 2014 before plunging to an all-time low of 1% in 2016.

Chinese authorities don’t order recalls. Instead, such campaigns are initiated by owner complaints to the manufacturer or AQSIQ. Experts tell FT the recall gap reflects a preference among domestic producers to handle defects directly with their customers rather than declaring a formal recall.

Foreign brands have taken the opposite tack since 2015, when they were criticized on state television for overcharging for service and repairs. Now they appear eager to announce recalls to preempt bad publicity.

Analysts tell FT that the quality of domestic brands is improving but still trails that of foreign marques assembled in China. Quality tracker J.D. Power’s Initial Quality Survey for Chinese vehicles in 2016 found an average 112 problems per 100 vehicles among Chinese brands compared with 98 for locally produced foreign models.