Car manufacturers lobby China on EVs

Jul 17, 2017

Car manufacturers’ trade associations have asked the China government to relax some of its EV regulations.

The request has come from the American Automotive Policy Council (AAPC), the European Automobile Manufacturers Association (ACEA), the Japan Automobile Manufacturers Association (JAMA) and the Korea Automobile Manufacturers Association (KAMA).

China says it wants one fifth of all cars sold in China to be electric or hybrid by 2025 and is giving subsidies to local EV manufacturers which are not given to foreign manufacturers.

China is also looking at introducing quotas on foreign car manufacturers from 2018 and, if quotas are not met it is considering banning foreign car manufacturers from importing internal combustion engine cars into China or making non-EV cars in China.

“The proposed rules’ ambitious enforcement date is not possible to meet, and if unchanged would lead to a widespread disruption of the product portfolio of most automakers operating in China. At a minimum, the mandate needs to be delayed a year and include additional flexibilities,” say the trade associations.

The trade associations are asking for equal treatment for subsidies between local snd foreign car manufacturers.

“This preference for domestic automakers over import automakers undermines the environmental goals of the regulation, puts imports at a competitive disadvantage, and risks opening China up to international trade disputes,” the letter said.

China is prioritising EV promotion because of pollution and because it wants to drive down the cost of local EV manufacturing in the hope of giving local manufacturers a competitive edge over foreign EV manufacturers.

It is estimated by McKinsey that 43% of the 870,000 electric cars produced in the world in 2016 came from China with Germany making 23% and the USA making 17%.

Source: Electronics Weekly