The State Administration for Market Regulation ("SAMR") has recently enacted and issued the Provisions on the Liability for the Repair, Replacement and Return of Automobile Products for Household Use (Revised Draft for Comment) (the "Draft for Comment") to seek public comments by April 13, 2019.
The Draft for Comment introduces major revisions as below. The first is setting forth provisions regarding the liability for three guarantees for key spare parts installed on electric vehicles for household use. The second is strengthening the protection of lawful rights and interests of consumers. And the third is adjusting authorities in charge of surveillance and administration and providing clarity on regulatory power of authorities at different levels. The Draft for Comment equates power batteries and driving motors with engines and transmissions, as the key systems of automobiles for household use, and adds them to the scope of spare parts which if broken could be completely replaced without charge. Meanwhile, quality issues in relation to power batteries, driving motors and their key components that arise again and again, are included in articles concerning replacement and return of vehicles, and circumstances where power batteries used on electric cars for household use are on fire or break down are also added to such articles.