New regulations for government car procurement were launched in Sept. 2011 and will be put into effect by the end of Oct. 2011. The most obvious change of this regulation was to downgrade the government car standard to 1.8L (included) and less than RMB180,000 from 2.0L and less  than RMB250,000 of the previous regulations.

The launch of the new regulations brought good news for domestic auto brands. We believed the followed brands will be benefitted from the regulations.

New regulation is unfavorable for joint venture brands; therefore, the focus of joint venture brands will hopefully shift to develop new models that qualify to the new regulation in the further.  

Source:ResearchInChina