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Aug. 14 Newsletter


Industry Trends

NEV license plate to be popularized nationwide next year

  • The Ministry of Public Security recently announced that it will promote the use of the new energy vehicle license plate in a step-by-step manner nationwide.

  • According to the ministry, aside from the five cities that have piloted the use of the NEV license plate, 10 cities including Baoding, Qingdao and Chengdu will start popularizing the new license plate from Nov. 2017 onwards; apart from municipalities, provincial capital cities and capitals of autonomous regions, at least one to two cities from each province or regions should begin promoting the new license plate by the end of Dec. 2017; all cities in China are required to start promoting the NEV license plate in the first half of 2018.

  • To make it easy for car owners to apply for or replace their current plates with the NEV license plates, the Ministry of Public Security ordered local public security bureaus to streamline relevant services. For instance, all newly registered NEVs should be granted NEV license plates. (People’s Daily, Aug. 14)

Calculating credits of passenger vehicle manufacturers: companies show great disparities in positive and negative credits

  • The Administrative Measures for Passenger Vehicle Manufacturers' Average Fuel Consumption Credits and New Energy Vehicle (NEV) Credits is scheduled to be implemented in the near future.

  • Reporters recently selected 15 domestic passenger vehicle manufacturers for credit calculation based on the 2016 passenger vehicle enterprises' average fuel consumption data announced by the Ministry of Industry and Information Technology.

  • The calculation result shows that BYD can get 900,000 positive credits thanks to the company's large amount of NEV output and sales. FAW-Volkswagen and Geely can get positive credits of over 800,000 and over 700,000, respectively. SAIC Volkswagen and SAIC-GM-Wuling's positive credits are more than 300,000. SAIC-GM's positive credit can reach nearly 200,000. 

  • In contrast, eight automakers generate negative credits. On the whole, second- and third-tier JV brands and automakers focusing on SUVs can easily generate negative credits. (China Automotive News, Aug. 14)

NEV license plate quota dried up until 2019, how to buy NEVs next year?

  • Beijing will announce the results of this year's fourth license-plate lottery for small passenger vehicles on Aug. 26. The lottery system has received a record of applications, which may result in a low winning rate of 843:1. 

  • As of Apr., Beijing has handed out all of the car license plates earmarked for new-energy vehicles (NEVs) this year. However, applications for NEV license plates are growing, with 46,254 individuals having already sent in applications for a plate. This means that Beijing's 2018 NEV license plate quota may be used up this year, and that applicants can't buy NEVs until 2019. 

  • It is speculated that the quota for NEV license plates will be increased next year, and that NEVs may be included in Beijing's car license-plate lottery to cope with growing applications. (Chinaero.com.cn, Aug. 14)

Chinese NEV automakers enter critical period: BAIC and Geely reshuffle executives

  • Along with the release of half-year reports for the new energy vehicle (NEV) market, Chinese local brands reshuffled their executives. Within just three days, two local brands adjusted their heads in charge of NEV marketing.

  • Last Friday, Li Yansong reportedly stood down as general manager of Geely's NEV sales company. Deputy general manager Xu An also resigned and joined a start-up.

  • On Aug. 13, an informed source revealed that Li Yixiu, current deputy general manager of BAIC Motor's sales company, was transferred to BAIC BJEV's marketing company to serve as general manager. Previous general manager Zhang Yong will be transferred to BAIC Group to take a new post. 

  • This year, China's vehicle market is at a low ebb, with NEV sales also being affected. BAIC BJEV, Geely's NEV business, and other Chinese NEV carmakers are taking a hit from the sluggish market. Given the situation, the two aforementioned automakers reshuffled their marketing heads in hopes of preparing for the next round of challenges. (Qctt.cn, Aug. 14)

Latest Car Models

Lexus to bring two noteworthy SUVs to Chengdu Motor Show 2017

  • Lexus is on track to launch two noteworthy SUVs, the new NX and LX 570 Superior limited special edition, at the upcoming Chengdu Motor Show 2017.

  • Besides intelligent technology, the new NX features a bold, personalized design, as seen by its redesigned front end.

  • The LX 570 Superior limited special edition has a unique spindle grille, making for a luxurious, dynamic style. (Sina.com.cn, Aug. 13)

Cadillac XT5 to launch hybrid version with nine-speed AT on Aug. 25

  • An official source says that the Cadillac XT5 will launch a hybrid version on Aug. 25.

  • In addition to offering improved fuel economy, the new version will have almost the same exterior and interior as the current XT5.

  • It will employ a mild hybrid powertrain featuring a nine-speed AT. (Xcar.com.cn, Aug. 13)