According to this newspaper, the \"Passenger Vehicle Fuel Consumption Limits\" (Phase III Standard) will be released in December and implemented starting in 2011. Unlike the previous two phases, the Phase III standard will include all models from a single automaker in the assessment scope. The new standard's fuel consumption limit will be 20% lower than the Phase II standard, and by 2015, the national average fuel consumption for passenger vehicles will be reduced to around 7 liters per 100 kilometers. The new standard will propose gradual targets, but strict implementation will begin in 2015.<\/p>\n\n\n\n
This year, calls for reducing passenger vehicle fuel consumption have grown louder to encourage manufacturers to produce compact sedans with lower fuel consumption and emissions. Compliance with the new policy will impact a company's profitability. It is understood that while the Ministry of Industry and Information Technology (MIIT) was discussing the draft standards for the \"Third Phase Passenger Vehicle Fuel Consumption Evaluation Methods and Indicators,\" research on supporting fiscal and tax policies linked to these standards was initiated. Automakers that fail to meet the standards will face tax penalties, while those that exceed the standards will enjoy reduced tax rates. Furthermore, the MIIT stated that after implementing the first and second phases of fuel consumption limits, over 800 models that did not meet the limits were discontinued by last year.<\/p>\n\n\n\n
Jin Yuefu, deputy chief engineer of the Standardization Institute of the China Automotive Technology and Research Center and one of the main drafters of the \"Passenger Vehicle Fuel Consumption Limits\" (Phase III Standard), stated that the Phase III limit standard has been drafted, but its formal implementation next year is \"unlikely\" because \"currently, no company fully meets the standard.\" The \"Phase III fuel consumption limits\" are based on the US Corporate Average Fuel Economy Act, incorporating the production volume of all models manufactured by an automaker into the overall assessment. For example, if an automaker produces 1 million vehicles annually, the weighted average of the fuel consumption limits for all its models must not exceed its passenger vehicle fuel consumption limit. Taking passenger vehicles with engine displacements of 1.6 liters and below as an example, currently only 206 models are included in the \"Energy-Saving Products for the Benefit of the People\" energy-saving vehicle promotion catalog, meeting the Phase III standard's restrictions. Jin Yuefu stated that companies have two options: one is to drastically reduce the fuel consumption of their products; the other is to adjust their product structure, producing more small-displacement and low-fuel-consumption products.<\/p>\n\n\n\n
From the current industry perspective, large-displacement vehicle manufacturers and domestic brand automakers may face significant challenges after the implementation of the new standards.<\/p>\n\n\n\n
\u2013Source: Shanghai Automotive News<\/p>","protected":false},"excerpt":{"rendered":"
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