CHINA REPORT
The new national standard for automotive emissions, scheduled to be implemented July 1, 2023, could boost China’s auto industry, say industry insiders.
The Ministry of Ecology and Environment, the Ministry of Industry and Information Technology, and other departments recently issued a joint notice proposing that the National VI Emission Standards for automobiles (National VI B) be implemented nationwide July 1, 2023.
Industry insiders believe that the implementation of the new regulations will drive car companies to accelerate technological upgrading, thereby achieving green and low-carbon development of the automotive industry.
The “National VI Standards” are standards formulated to prevent and control motor vehicle pollution emissions and improve environmental air quality. The “National Sixth Standard” for light vehicles sets two emission limit schemes of National VI A and National VI B, to be implemented in 2020 and 2023 respectively.
It is reported that the National VI B emission standard has changed the previous equivalent conversion of European emission standards, significantly increasing the limit indicator standards for most pollutants. Wang Jun, a senior engineer at the Vehicle Emission Monitoring Center of the Ministry of Ecology and Environment, said the implementation of the National VI B standard has played a significant role in reducing nitrogen oxides (NOx), volatile organic compounds (VOCs), and primary particulate matter emissions.
More importantly, it provides a more favorable technical basis for all regions to further control the actual emissions of vehicles and supervise the compliance of in use vehicles.
Source: China Economic Network. Read The Article
PSR Analysis. According to policy regulations, the strictest National 6B standards pose challenges to the automotive industry, especially in the commercial vehicle industry. In order for trucks and buses to meet the new emission requirements, it is necessary to upgrade and transform technology in multiple aspects such as the engine, exhaust after treatment, and electronic control system.
It also involves improving the quality of fuel and lubricants, which is driving the market growth of low-carbon and emission reduction related industries.
Based on past experience, it is estimated that the National V buffer period is at least three years, which means that the restriction policy may not be updated until the emission standards are updated for three years.
On the other hand, it is very difficult to restrict the use of National IV and V vehicles. According to incomplete statistics, currently, National IV and V models account for about 69% of all vehicle models in China. Currently, most of the restriction policies are still targeted at National III and IV vehicles.
The significant reduction in pollutant emissions caused by heavy vehicles in China has led to a decrease in environmental PM2.5 concentration and a reduction in haze weather. At the same time, the price of fuel heavy-duty trucks will be higher than that of National 6A. Therefore, compared to fuel heavy-duty trucks, the cost advantage of gas heavy-duty trucks, which has been in a downward trend, may increase. PSR
Jack Hao is Senior Research Manager – China, for Power Systems Research
