China's Ministry of Information and Technology (MIIT) issued a guideline Sunday, urging the nation's auto producers to establish quality accountability mechanism to improve quality management.
The MIIT warned auto production enterprises against blind expansion, urging them to focus more on technology upgrade and improve product quality by using "new technology, new technics, new equipment and new materials."
Auto producers were also asked to strengthen after-sale service, setting up an accountability mechanism to timely recall and deal with the faulty products.
As China's auto industry is at a stage of rapid development, it should take effective measures to ensure product quality, so as to prompt the industry to develop in a sound and healthy way, said an official with the MIIT.
Data from the China Association of Automobile Manufacturers showed that new auto sales rose 46.15 percent year on year to 13.64 million units in 2009 in China, helping the country overtake the United States as the world's largest auto market.
Hu Song, an auto analyst with Haitong Securities, warned Chinese automakers that overseas production also brings many challenges from local policies and laws as well management risks.
China's biggest homegrown vehicle exporter Chery boosted its global production network to 15 destinations by adding six assembly plants outside the mainland last year.
Brilliance Auto, Chinese partner of German luxury carmaker BMW, has opened an assembly plant for producing its Jinbei-branded light-duty trucks since 2004 in Vietnam.
Chongqing-based Chang'an Auto, which has already set up five overseas plants, also said that it would invest more than $80 million in South Africa to establish a production plant and a financing company in the next five years.