Automotive Three Guarantees (Provisions on the Liability for Repair, Replacement and Return of Household Automotive Products)

Automotive Three Guarantees is the colloquial term for the "Provisions on the Liability for Repair, Replacement and Return of Household Automotive Products" (referred to as the "Three Guarantees Provisions"). Issued by the State Administration for Market Regulation, it aims to clarify consumers' rights to repair, replacement, and return should quality defects occur within the warranty period of household automotive products. The policy came into effect on 1 October 2013 and underwent a major revision on 1 January 2022 to further broaden consumer protection coverage.

Core Content of the Three Guarantees Policy

The "Three Guarantees" specifically covers:

Guaranteed Repair: Within the vehicle's Three Guarantees validity period (at least 2 years or 50,000 km of mileage, whichever comes first), any product quality defects must be repaired free of charge by the manufacturer or dealer (including labour and parts costs).

Guaranteed Replacement: Within the Three Guarantees validity period, consumers are entitled to a 1-to-1 replacement upon presenting the Three Guarantees certificate and vehicle purchase invoice under these circumstances: critical safety-related defects remain unresolved after 2 cumulative repairs, or new critical safety defects surface; the engine, transmission, traction battery, or drive motor still fails to function normally after 2 cumulative replacements due to quality defects; or the same major component of the steering, braking, suspension systems, front/rear axles, or chassis/body still fails to operate properly after 2 cumulative replacements due to quality defects.

Guaranteed Return: If the conditions for vehicle replacement are met but the dealer has no identical make and model available for exchange, the consumer may opt for a full return/refund. Alternatively, if cumulative downtime for defect rectification exceeds 30 days or cumulative repairs for the exact same quality issue exceed 4 times within the Three Guarantees validity period, the consumer is also eligible to return the vehicle upon producing the Three Guarantees certificate and purchase invoice.

Key Highlights of the 2022 Revised Edition

The updated "Provisions on the Liability for Repair, Replacement and Return of Household Automotive Products", effective 1 January 2022, expands on the original framework:

• Inclusion of traction batteries and electric drive motors under Three Guarantees: Mandates that if traction batteries or drive motors fail to function normally after 2 cumulative replacements due to quality defects, owners are entitled to a vehicle replacement or return.

• Introduction of a 7-day vehicle return/replacement policy: Within 7 days of vehicle delivery, if major powertrain components—such as the engine, transmission, traction battery, drive motor, or their key sub-assemblies—require replacement due to quality defects, consumers can return or exchange the car free of charge.

• Refined calculation of repair counts: Formally clarifies that "cumulative repairs" specifically accounts for the number of repair attempts addressing the exact same quality defect.

• Strengthened dealer and OEM obligations: Strictly prohibits manufacturers and dealers from setting unfair conditional clauses that restrict consumers' rights to repair, replacement, or return.

Consumer Dispute Resolution and Redress Channels

Should consumers face Three Guarantees disputes, they can pursue resolution via the following channels:

1. Direct settlement with the dealer: First seek an amicable settlement with the authorised dealer using the Three Guarantees certificate and official sales invoice.

2. Lodging a complaint with consumer bodies: Contact the 12315 consumer hotline or lodge a formal complaint with the local consumer association.

3. Escalation to market supervision authorities: Formal Three Guarantees disputes are handled by the market supervision and regulation departments, supported by their dedicated Automotive Three Guarantees Technical Expert Committee for technical appraisals.

4. Filing for arbitration or legal litigation: If mediation breaks down, apply for commercial arbitration as per the sales contract or initiate legal proceedings in the People's Court.

Note that when lodging a claim, consumers must observe the statutory validity limit of 2 years or 50,000 km (whichever comes first), and furnish the Three Guarantees certificate, purchase invoice, along with complete vehicle service records.