Govt ponders raising cap on foreign stakes in automotive joint ventures

Ministry of Commerce still weighing pros and cons

A fierce debate is raging among auto industry insiders over a measure proposed by the Ministry of Commerce last year that would allow foreign partners in a joint venture to hold more than a 50 percent stake.

The ministry announced in November that industries like automotive and steel will be further opened to foreign investors, hinting that it may lift limitations on foreign share holdings in automotive joint ventures in the near future.