Broken 4S shop price monopoly 70 auto dealers alliance at the end of the month
If no accidents occur, Shenyang is set to become the first non-governmental chamber of commerce representing car and motorcycle accessory producers and sellers by the end of this month. To challenge the current 4S store monopoly on auto parts pricing, 70 major auto distributors in Shenyang have formed alliances, uniting to counter the power of large groups. Recently, a reporter learned about the latest developments from the municipal chamber of commerce. Industry experts believe that this initiative could significantly reshape the sales structure in Shenyang.
The potential market for auto parts in Shenyang is massive—reaching approximately 2 billion yuan annually. There are over 200 private auto and motorcycle manufacturing companies, more than 3,000 auto parts dealerships, and over 100,000 employees in the sector. However, for years, the industry has lacked effective communication with the government, leading to challenges in policy implementation and development. Additionally, there has been a lack of internal organization and guidance, resulting in weak self-discipline among enterprises. When faced with infringements, companies often struggled to find solutions.
To address these issues, the new chamber of commerce aims to improve communication between businesses and the government while also facilitating information exchange between members and domestic and foreign suppliers. This will help increase business opportunities, enable resource sharing, and expand sales channels. Moreover, the chamber will play a key role in promoting self-regulation within the industry. By setting standards and encouraging fair practices, it will help members collectively resist unfair competition such as low-price dumping, monopolization, delayed payments, and the sale of counterfeit or substandard products. In cases of rights violations, members can rely on the chamber to protect their legitimate interests.
Industry insiders believe that this joint effort could break the long-standing "4S" model monopoly, which has kept auto part prices artificially high and limited growth in the sector. By fostering a more competitive and fair environment, the chamber’s formation is expected to benefit both industry players and consumers, offering better quality and more affordable services. This marks a significant step forward for Shenyang's auto parts industry, signaling a shift toward greater collaboration, transparency, and fairness.
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