Page 170 - 2020 White Paper on the Business Environment in China
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0 White Paper on the Business Environment in China
vehicles in July 2019, a little more than half of sales NEV Recalls
in June. China cut its subsidies for the vehicles in
late June so people rushed to place their orders China is strengthening the management of its
before the policy took effect. This resulted in a system for recalling new energy vehicles, as part of
spike in June sales and then a fall in July. Another the country’s efforts to forge well-organized and
cause was the implementation in July of stricter high-quality development of the world’s largest
State VI emission standards earlier than the NEV market. On its official website, the State
central government’s 2020 deadline by 15 cities Administration for Market Regulation unveiled
and provinces. Dealers offered really attractive a notice in March 2019, further strengthening
discounts to sell out the older gasoline models the management of new energy vehicle product
in stock before the new standards took effect, recalls. According to the notice, once the new
which lured away some potential new energy energy vehicles have accidents such as a traffic
vehicle buyers as well. New energy vehicles crash or fire, the automakers that produce or
had been the rare bright spot in the country’s import them should promptly investigate and
auto market before their sales declined. The analyze the causes of those accidents and submit
accumulated NEV sales hit 699,000 from January the results to the State Administration for Market
to July 2019, up 49.9 percent year-on-year. Sales Regulation. In addition, the notice says the new
of such vehicles were expected to return to energy carmakers, as the core producers of new
normal in the third quarter as the impact of the energy vehicles, should establish and improve
policy changes gradually subsides. September their traceability information management
and October are also usually the best months mechanism, stop producing, selling and
of any year for car transactions in the country. importing defective new energy automobiles
Still, it is normal that annual growth rates of over and recall the defective ones that are sold. The
40 percent seen in the past years would become manufacturers of automobile components and
harder to hit because the base number of such parts, including the power battery, electrical
vehicles in China has become bigger. China has machinery and electronic control systems, are
been the world’s largest market for new energy required to inform the automakers and make
vehicles since 2015, with around 3.5 million on reports to the State Administration for Market
its roads and most of them produced by local Regulation after they find latent defects in new
makers such as BYD and BAIC’s new energy energy vehicles, according to the notice. The
arm, Beijing Electric Vehicle Co Competition will notice reflects trends in the industry. Statistics
become tougher as China has made it clear it will released by the State Administration for Market
withdraw its subsidies by the end of 2020 and Regulation show that China sold a total of
international carmakers are stepping up their 1,256,000 units in the new energy vehicle sector
preparations to get into the segment. Japanese in 2018, of which about 135,700 were recalled.
carmaker Toyota’s battery-making subsidiary will That equates to at least one recall for every 10
build its fourth hybrid vehicle battery plant in new energy vehicles sold. The biggest differences
China. The new plant to be built in 2021 will be between the body structures of new energy
capable of producing roughly 100,000 batteries vehicles and traditional fuel vehicles lie in the
a year, quadrupling its total capacity in China to
about 400,000 units. Two more battery plants
are slated to go into operation in China in 2020.
The CEO of German car giant Volkswagen AG,
Herbert Diess, said half of the 22 million electric
vehicles it plans to produce by 2028 globally will
be in China. BMW is making China as one of its
exporters of electric iX3 SUV, which is scheduled
to roll off the assembly line in 2020 (Li, NEV).
170
vehicles in July 2019, a little more than half of sales NEV Recalls
in June. China cut its subsidies for the vehicles in
late June so people rushed to place their orders China is strengthening the management of its
before the policy took effect. This resulted in a system for recalling new energy vehicles, as part of
spike in June sales and then a fall in July. Another the country’s efforts to forge well-organized and
cause was the implementation in July of stricter high-quality development of the world’s largest
State VI emission standards earlier than the NEV market. On its official website, the State
central government’s 2020 deadline by 15 cities Administration for Market Regulation unveiled
and provinces. Dealers offered really attractive a notice in March 2019, further strengthening
discounts to sell out the older gasoline models the management of new energy vehicle product
in stock before the new standards took effect, recalls. According to the notice, once the new
which lured away some potential new energy energy vehicles have accidents such as a traffic
vehicle buyers as well. New energy vehicles crash or fire, the automakers that produce or
had been the rare bright spot in the country’s import them should promptly investigate and
auto market before their sales declined. The analyze the causes of those accidents and submit
accumulated NEV sales hit 699,000 from January the results to the State Administration for Market
to July 2019, up 49.9 percent year-on-year. Sales Regulation. In addition, the notice says the new
of such vehicles were expected to return to energy carmakers, as the core producers of new
normal in the third quarter as the impact of the energy vehicles, should establish and improve
policy changes gradually subsides. September their traceability information management
and October are also usually the best months mechanism, stop producing, selling and
of any year for car transactions in the country. importing defective new energy automobiles
Still, it is normal that annual growth rates of over and recall the defective ones that are sold. The
40 percent seen in the past years would become manufacturers of automobile components and
harder to hit because the base number of such parts, including the power battery, electrical
vehicles in China has become bigger. China has machinery and electronic control systems, are
been the world’s largest market for new energy required to inform the automakers and make
vehicles since 2015, with around 3.5 million on reports to the State Administration for Market
its roads and most of them produced by local Regulation after they find latent defects in new
makers such as BYD and BAIC’s new energy energy vehicles, according to the notice. The
arm, Beijing Electric Vehicle Co Competition will notice reflects trends in the industry. Statistics
become tougher as China has made it clear it will released by the State Administration for Market
withdraw its subsidies by the end of 2020 and Regulation show that China sold a total of
international carmakers are stepping up their 1,256,000 units in the new energy vehicle sector
preparations to get into the segment. Japanese in 2018, of which about 135,700 were recalled.
carmaker Toyota’s battery-making subsidiary will That equates to at least one recall for every 10
build its fourth hybrid vehicle battery plant in new energy vehicles sold. The biggest differences
China. The new plant to be built in 2021 will be between the body structures of new energy
capable of producing roughly 100,000 batteries vehicles and traditional fuel vehicles lie in the
a year, quadrupling its total capacity in China to
about 400,000 units. Two more battery plants
are slated to go into operation in China in 2020.
The CEO of German car giant Volkswagen AG,
Herbert Diess, said half of the 22 million electric
vehicles it plans to produce by 2028 globally will
be in China. BMW is making China as one of its
exporters of electric iX3 SUV, which is scheduled
to roll off the assembly line in 2020 (Li, NEV).
170
