Car Brands Ask for 12-Month Grace Period Ahead of China's Strictest Emission Rules
Zhang Yushuo
DATE:  Mar 31 2023
/ SOURCE:  Yicai
Car Brands Ask for 12-Month Grace Period Ahead of China's Strictest Emission Rules Car Brands Ask for 12-Month Grace Period Ahead of China's Strictest Emission Rules

(Yicai Global) March 31 -- Chinese automobile manufacturers are asking for six to 12 months of extra time to sell millions of cars before they are turned unmarketable by the strictest emission standards ever in July.

Car companies suggested the government should allow sales of vehicles that do not meet the new standards up to a year after June to avoid waste but production of those models could be seized in late June, according to meeting minutes the China Automobile Dealers Association released today. Auto giants SAIC Motor, GAC Group, Mercedes-Benz, BMW, and Volkswagen were some of those firms that joined the meeting yesterday.

China's new auto emission policy called VI-b will come into effect on July 1 to prompt carmakers to improve their gas-powered vehicle technologies to limit emissions including nitrogen oxides while introducing real driving emissions tests.

Manufacturers that joined the conference yesterday said sales in the first quarter were lower than expected and the ongoing car price war just makes it worse. These carmakers have around two million vehicles in stock which do not meet the new standards.

The pace of destocking varies as brands have different structures, models, locations, and dealers, the firms said, adding that certain models, especially high-value ones, are selling slowly in some regions.

Editor: Emmi Laine, Xiao Yi

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Keywords:   emission,inventory