Fearing that a new sales network would damage their interests, FAW-Volkswagen Audi's existing dealers have made their displeasure clear ever since Audi signed a memorandum with SAIC in November for establishing another joint venture that might also be responsible for producing and selling Audi cars.

Dozens of Audi's 450 authorized dealers - which sell Audi cars made by FAW-Volkswagen Audi and imported models - have already stopped taking deliveries of imported cars and will likely join the boycott.

The move came after an Audi board member said on March 15 that if dealers in China lose trust in Audi, the company will not be able to force them to cooperate.

On Feb 16, the newly established Audi Dealer Association voiced a new wave of opposition to the German carmaker's intention to produce and sell cars with SAIC Motor.

South Korean brands' strength falls in Chinese market

South Korean marques are losing ground in China, as local brands in the world's largest auto market are offering improved quality and a wider choice of SUV models.

Hyundai Motor's sales volume in China fell 44.3 percent in March from the same month last year, while Kia Motors saw its March sales in the country plummet 68 percent. While March was the first month that Hyundai has seen its China sales fall this year, Kia's sales have been dropping for the whole quarter.

South Korean brands' failure to come up with the right models is another problem. SUVs are China's fastest growing segment, but Hyundai or Kia were missing from the top 10 best-sellers this year, most of which are from Chinese brands.

New rules set to govern low-speed electric vehicles

The Chinese government is set to fill in the existing regulatory gap to update national standards for low-speed electric vehicles in a move to improve both driver and pedestrian safety, and air quality.

The government is reportedly determined to regulate the sector, and experts are studying the regulations, according to sources in the working group for drafting the new regulations.

The local government in Dezhou city, Shandong province, has already begun scrapping those lower-quality vehicles that are unlikely to meet the new standards.

Under the existing regulatory framework, there are no rules governing the production and sale of electric vehicles with top speeds of less than 100 kilometers per hour.

This has resulted in a large number of cheap, poorly-made electric vehicles powered by polluting lead batteries, which threaten both road safety and the environment, the Ministry of Industry and Information Technology said in a statement.