Fuel: Buy­ers have more choices

China Daily (Hong Kong) - - BUSINESS -

oil will pro­mote the per­for­mance of both di­vi­sions, and will help Sinopec Corp to en­large its mar­ket,” she said.

“It is be­lieved Sinopec Corp will co­op­er­ate with more part­ners, en­abling di­verse brands to meet de­mands of var­i­ous cus­tomers.”

Sinopec Corp’s car sales foray fol­lows a new set of reg­u­la­tions that took ef­fect on July 1, re­plac­ing the decades-old poli­cies that a car seller must be au­tho­rized by a car­maker. The new regime is ex­pected to spawn more eco­nom­i­cal sales chan­nels.

A dealer can now choose to be au­tho­rized by a car­maker or not, and is al­lowed to sell mul­ti­ple brands.

Sinopec Corp said it would con­sider co­op­er­at­ing with more cul­tural me­dia cor­po­ra­tions and on­line au­to­mo­tive re­tail­ers to fur­ther ex­pand its auto sales. Sinopec is not alone in tak­ing ad­van­tage of the new poli­cies. Gome Elec­tric Ap­pli­ances and Sun­ing Hold­ings are also mak­ing a foray into car sales based on their na­tion­wide net­works.

How­ever, Zhao warned that it is hard for Sinopec Corp to con­vert au­to­mo­bile sales into a large-scale busi­ness, as it has a fixed num­ber of fuel sta­tions, and lacks rel­e­vant ex­pe­ri­ence and tal­ent pool.

Agreed Cui Dong­shu, sec­re­tary-gen­eral of the China Pas­sen­ger Car As­so­ci­a­tion. In the short term, al­ter­na­tive car sales chan­nels pose no threat to tra­di­tional au­tho­rized deal­ers, he said.

This is a great op­por­tu­nity for Sinopec Corp to gain mar­ket share . . .”

di­rec­tor of the in­ter­na­tional trade re­search depart­ment at the China Coun­cil for Pro­mo­tion of In­ter­na­tional Trade

Zheng Yi­ran con­trib­uted to the story.

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