Recalls Hit 11 Million Units in China in 2016

IHS Global Insight

January 9, 2017

Over 11 million vehicles were recalled in China in 2016 due to issues of quality. The Chinese General Administration for Quality Supervision, Inspection, and Quarantine (AQSIQ) issued recall notices for 11.32 million 'faulty' cars in China as of 25 December 2016, reports the China Daily, quoting the Xinhua news service. Of these over 75% of the recalls were prompted by the AQSIQ.

The main reasons for the recalls in 2016 were issues with airbags and seat belts resulting in recalls for 6.43 million units in China, while issues with engines led to 2.42 million units being recalled, and issues with car bodies resulted in 852,900 units being recalled last year. The overall 11.32 million units recalled marks a 103% year-on-year (y/y) hike in recalls in the country. The volume of vehicles recalled continues to rise in China as the AQSIQ is increasingly vigilant, and local Chinese consumers are also far more globally savvy and often keep abreast with recall notices issued in markets outside of China. Automakers are also now tweaking models to further entice local consumers with China-specific products such as different air filtration systems for cars in the country. In 2015 a total of 5.54 million units were recalled as of 28 December 2015, involving 76 different automakers. This was a rise of 17% y/y from recalls in 2014 in China. In 2013 the AQSIQ strengthened recall notices and over 5 million units were issued with recalls that year. The recall system was introduced in 2004 in China.

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