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Car makers urge rethink on China’s EV policy

Car markers around the world have urged China to delay their planned quotas for electric and hybrid cars, saying it is impossible to meet current proposals and it would cause a huge disruption to their businesses, according to Reuters.

The policy includes a goal for hybrid and electric cars to make up at least a fifth of Chinese vehicle sales by 2025, with escalating quotas beginning in 2018. Chinese government officials have pledged to increase the buying of new-energy vehicles to 2 million units by 2020.

A report published last month, based on data from the International Organization of Motor Vehicle Manufacturers, forecasted that new car sales in China would reach 29.7 million by 2020 and account for 30 per cent of the global car market.

A letter seen by Reuters and dated June 18 was addressed to China’s minister of industry and information technology, Miao Wei.

“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,” the letter states.

“At a minimum, the mandate needs to be delayed a year and include additional flexibilities.” 

The letter is sighed by 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).

Last year, 870,000 electric vehicles were produced worldwide, with 43 per cent manufactured in China, 23 per cent in Germany and 17 per cent in the US.

As well as a delay in implementing the quotas, and a reconsideration of the harsh policies for not meeting them (which include a ban on importing and producing combustion-powered vehicles in China), car makers have called for equal treatment of Chinese and foreign manufacturers.

Currently, foreign car makers are secluded from government subsidies for batteries and new-energy vehicles (NEVs), which they claim “undermines the environmental goals of the regulation, puts imports at a competitive disadvantage, and risks opening China up to international trade disputes.”

In response to China’s quotas, car makers are trying to ramp up local production of EVs and negotiate around high tariffs on imported vehicles.

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Manufacturers seek law changes

The Alliance of Automobile Manufacturers (ALAM) is waiting for a reply from a letter they sent President-elect, Donald Trump.
The eight-page letter, which was reported by Reuters, highlighted the need to revise fuel efficiency mandates and autonomous vehicle policies under the Obama administration.
ALAM includes General Motors Co, Ford Motor Co and Toyota Motor Corp and sent a letter which stated that “technology and change are swamping the regulatory capacity to manage our emerging reality. Reform is imperative.”
The letter also seeks a “robust examination” of the combined impact of “uncoordinated regulatory oversight” by at least 10 federal and state agencies.
It urges creation of a new timetable for regulators to respond to industry requests and seeks that regulators adopt a “whole car cost analysis” for new vehicle regulations.
In September, the Obama administration said it was considering seeking the power to review and approve technology for self-driving cars before they hit the road.
The National Highway Traffic Safety Administration (NHTSA) and Environmental Protection Agency (EPA) must decide by April 2018 whether the 2022 through 2025 model year requirements for fuel efficiency and greenhouse gas emissions should be changed or not.

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