Excessive average fuel consumption - Import car companies may face penalties

The "Accounting Method for Average Fuel Consumption of Passenger Car Enterprises" implemented on May 1, 2013 stipulates that by 2015, the average fuel consumption of passenger car products in China must be reduced to 6.9L/100Km, and by 2020, the average fuel consumption of domestic passenger car products must be reduced to 5.0L/100Km.

With the implementation of the measures, the domestic automotive industry has established a new evaluation system based on the average fuel consumption of enterprises. While making clear regulations on the average fuel consumption of passenger car products (including imported passenger cars) in the future, it has also established the overall goal of the third stage limit of fuel consumption for passenger cars in the automotive industry. This move will inevitably force passenger car companies to accelerate the deployment of energy-saving models and promote the acceleration of the displacement of imported and domestic cars.

Although officially implemented less than half a year ago, this policy has had a positive and significant impact on the automotive industry.

The first six months after the policy was released showed that the overall average fuel consumption of the domestic passenger car industry has improved. In August 2013, 103 companies submitted a mid-term report on their average fuel consumption to the Ministry of Industry and Information Technology. According to the statistics of enterprise declaration data, the sales volume (including imports) of passenger cars in China in the first half of 2013 was 8.6651 million units, and the actual average fuel consumption of enterprises reached 7.34L/100km, while the target value calculated according to policy objectives was 7.42L/100km.

However, it is worth noting that if classified by domestic and imported cars, statistical data also shows that the average fuel consumption of domestic passenger car companies is significantly better than that of imported car companies. According to statistics from the first half of 2013, based on the ratio of average fuel consumption to target value, the average fuel consumption ratio of domestic car companies is 96%, which is a significant improvement compared to the 100% ratio in 2012. In terms of imported cars, the changes are not significant. Data shows that the average fuel consumption ratio of imported car companies was 106% in 2012 and 105% in 2013, which is only a slight decrease. The situation of exceeding the average fuel consumption limit of imported car companies is still severe.

According to statistics from the Ministry of Industry and Information Technology, the average fuel consumption of domestic imported car dealers in 2011 was 10.1L/100km, far higher than the average fuel consumption of domestic cars. The ratio of average fuel consumption to target value was between 109% and 110%; In the second half of 2012, 25 imported passenger car dealers imported 452000 passenger cars (excluding exports), with an average curb weight of 1784kg and an actual average fuel consumption of 9.16L/100km.

If we look at the actual average fuel consumption of 9.16L/100km mentioned above, according to the report on average fuel consumption of imported car companies released by the Ministry of Industry and Information Technology in the second half of 2012, many domestic imported car companies are facing serious exceedances, including Aston Martin (China), Honda (China), Ferrari Maserati (Shanghai), Jaguar Land Rover (Shanghai), Nissan (China), Porsche (China), SAIC-GM, General Motors (China), Chrysler (China), Hyundai (China) and other imported car companies. The average fuel consumption of the above-mentioned car companies is most severely exceeded by supercar and large displacement imported models, with Aston Martin (China) reaching the highest actual value of 14.59L/100km, Ferrari Maserati (Shanghai) reaching 14.32L/100km, and Nissan (China) and General Motors (China) both reaching 10.49L/100km and 10.16L/100km, respectively. If based on the calculation of the number of imported vehicle models and the average curb weight, the imported car companies that exceed the standard value in the actual value of average fuel consumption also include Renault (China) and Suzuki (China).

Although the Ministry of Industry and Information Technology has only released the statistical data report on the average fuel consumption of domestic passenger car companies in the first half of 2013, relevant personnel from the Ministry of Industry and Information Technology have stated that the overall estimate of the average fuel consumption of imported car companies for the whole year of 2013 is not optimistic. Especially for large displacement imported vehicle companies, the average fuel consumption exceeding the standard is still very serious, "the person told reporters." However, starting from 2014, government departments will guide these companies to meet relevant requirements through policies.

The reporter learned that with the implementation and promotion of the "Accounting Method for Average Fuel Consumption of Passenger Car Enterprises", as well as the requirement and goal of gradually reducing the average fuel consumption of passenger car products by the country, the five ministries in charge of this policy, namely the Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Commerce, the General Administration of Customs, and the General Administration of Quality Supervision, Inspection and Quarantine, are further studying and formulating corresponding punishment measures based on the situation of over standard car enterprises. This means that if the above-mentioned imported car companies do not reduce their average fuel consumption in 2014, they will face penalties from relevant departments. A person close to the situation said, "From the current situation, there is a high possibility of imposing large fines, and it is expected that specific measures will be announced within this year.

It is also reported that according to the implementation of the "Accounting Method for Average Fuel Consumption of Passenger Vehicle Enterprises", the five ministries and commissions have included domestic passenger vehicle production enterprises in the "Vehicle Production Enterprise and Product Announcement" of the Ministry of Industry and Information Technology for the management of average fuel consumption requirements and compliance of passenger vehicle enterprises, and require mandatory product certification. Imported car companies selling related imported vehicle models in China also need to obtain the management requirements of China's mandatory product certification.

Industry insiders predict that based on the situation in 2014, under the requirements of the new consumption tax and policies related to average fuel consumption, the imported car market will inevitably face a new round of structural adjustment this year, and high price and large displacement products will face even more severe market tests. However, in the long run, there is still significant pressure for energy conservation and emission reduction in the imported car market. With the implementation of the "Accounting Method for Average Fuel Consumption of Passenger Car Enterprises", imported cars will continue to maintain their advantage in the high-end automobile market while further expanding their market to meet increasingly strict domestic standards. Small displacement, miniaturization, and lightweighting will become new development trends. Wang Cun, the manager of China Imported Automobile Trading Co., Ltd., believes that "in the future, the prices of relevant imported car models of penalized car companies may increase or even be forced to stop importing related car models, and even accelerate the introduction of hybrid car models to meet policy requirements