New regulations good for environment, tough on automakers . . .
On Monday, China introduced its new automobile emissions standard, National VI, now considered one of the world’s strictest. The move, which was initially slated to begin in July 2020, became effective in 15 major cities and provinces in an effort significantly reduce pollution. With car dealerships struggling to sell vehicles that just met the previous National V standard, smaller Chinese automakers are falling behind in producing fuel-efficient vehicles.
A potential boost for big international manufacturers . . .
China’s automobile market, now the world’s largest, has become saturated as many small Chinese companies are competing with American, German, and Japanese industry giants that have shifted their focus to China. While new car sales have been declining, the introduction of stricter emissions standards should give foreign automakers an advantage. Companies such as Toyota and Volkswagen already implement cleaner technologies in vehicles sold in other markets, thereby limiting the costs of switching production. Meanwhile, Chinese competitors are struggling to implement more efficient technologies in their new vehicles in a timely manner.
China, a new emissions standard bearer . . .
The EU, Japan, and the U.S. have often been at the forefront of setting emissions standards in the auto industry. By unveiling National VI, China can now show that it too can set such standards. This gives Canada, which has historically followed the U.S. in setting emissions standards, another example from which it can develop higher standards en route to its goal of 100 per cent zero-emissions new car sales by 2040.
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- Nikkei Asian Review: China’s new emission rules take scalpel to bloated auto industry
- Reuters: Behind the plunge in China auto sales: chaotic implementation of new emissions rules
- Xinhua: China starts implementing tougher vehicle standards
New regulations good for environment, tough on automakers . . .
On Monday, China introduced its new automobile emissions standard, National VI, now considered one of the world’s strictest. The move, which was initially slated to begin in July 2020, became effective in 15 major cities and provinces in an effort significantly reduce pollution. With car dealerships struggling to sell vehicles that just met the previous National V standard, smaller Chinese automakers are falling behind in producing fuel-efficient vehicles.
A potential boost for big international manufacturers . . .
China’s automobile market, now the world’s largest, has become saturated as many small Chinese companies are competing with American, German, and Japanese industry giants that have shifted their focus to China. While new car sales have been declining, the introduction of stricter emissions standards should give foreign automakers an advantage. Companies such as Toyota and Volkswagen already implement cleaner technologies in vehicles sold in other markets, thereby limiting the costs of switching production. Meanwhile, Chinese competitors are struggling to implement more efficient technologies in their new vehicles in a timely manner.
China, a new emissions standard bearer . . .
The EU, Japan, and the U.S. have often been at the forefront of setting emissions standards in the auto industry. By unveiling National VI, China can now show that it too can set such standards. This gives Canada, which has historically followed the U.S. in setting emissions standards, another example from which it can develop higher standards en route to its goal of 100 per cent zero-emissions new car sales by 2040.
READ MORE
