Record auto recalls in 2013

A woman surnamed Li in Langfang, Hebei province told the website www.hebradio.com that the airbag in her car failed during an accident, but when she turned to the dealer for compensation, she was asked to submit an appraisal from an authoritative third-party agency.

"The cost of the appraisal was higher than the cost of the airbag and it will take a lot of time. I don't think it's worth it," Li said.

The warranty regulation says customers can submit complaints to carmakers or dealers, or resort to third-party agencies such as local consumers councils.

The regulation also requires an appraisal of product quality and responsibility from an expert panel designated by a provincial-level quality supervision organization. But who should pay the cost is not clearly defined.

When the regulation first took effect, some consumers voiced concerns about potentially expensive expert appraisals that cost tens of thousand yuan.

Lian Jun, deputy director of the complaint department at the Hebei Consumer Council, said that a revised consumer rights protection law set to take effect on Mar 15 has new regulations on penalties for dealer violations.

"Dealers at fault who refuse to have a peaceful settlement with customers will have bad record in a nationwide credit ranking system. After three times its name will be publicized as problematic dealer," Lian said.

He said that the law also mandates that dealers will bear the cost of appraisals.

Analysts said the new regulations are not only good for consumers but also play an important role for automakers and dealers to improve brand image through offering better products and services.

Zhang Zhiyong, an independent auto analyst in Beijing, said that auto recalls should not be viewed as a punishment for automakers. Instead, it helps elevate brand image by showing responsibility to consumers.

"Toyota remained the largest automaker by sales around the globe after so many recalls. Great Wall had more recalls than domestic counterparts, but its sales increased 21 percent to 754,000 units in 2013, making it the leader among Chinese brands," Zhang said.

China is the world's largest auto market with production and sales both surpassing 20 million units last year, so no automaker can afford to ignore the market, said analysts.

But they added the significance should not only be reflected in the number of new models introduced, but also in responsibility for defective vehicles and in disputes with consumers.