Audi-led foreign automakers may be shut out of Chinese government fleet

BEIJING / SHANGHAI - China's government plans to stop buying cars from Volkswagen AG's Audi and other foreign brands, threatening to lock them out of an estimated $13 billion segment of the world's biggest vehicle market.

All 412 models approved for purchase by State agencies this year will be limited to Chinese brands, according to a proposal disclosed by the Ministry of Industry and Information Technology last week. The preliminary list is open for public consultation until March 9, according to the ministry.

Dongfeng Automobile Co and FAW Car Co were among Chinese automakers whose shares surged on speculation the government, the nation's biggest buyer of vehicles, is stepping up efforts to protect its domestic industry as they struggle to compete against global producers such as General Motors Co and VW. China stopped offering some incentives on investments from foreign automakers this year to clamp down on overcapacity.