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April 2020 update: China’s policies rolled out to aid automobile industry
Monika From Gasgoo| May 06 , 2020

Shanghai (Gasgoo)- Several significant policies that take account of the development of both new energy vehicles (NEVs) and intelligent-connected vehicles (ICVs) in China were rolled out in April at the national level. Besides, some of them were also launched to boost the auto sales which took a hit amid the fight against the coronavirus. We do expect to see a quick rebound as the country is going all out to revive the auto production and sales.

China to lower threshold of market access for NEV manufacturers

On April 7, China's Ministry of Industry and Information Technology (MIIT) unveiled the amendments on the Provisions the Provisions on the Access Administration of NEV Manufacturers and Products (the Provisions) that was issued in 2017 for the sake of sustainable and sound develop of China’s NEV industry.

China automobile policy, China NEV subsidy, China NEV tax exemption, China automotive news

(Aion LX, photo source: GAC NE)

“With the change of domestic and overseas situations, the threshold of market access should be lowered, and operational and post-operational oversight over businesses should be strengthened to better meet the national development demands of NEV industry”, said the ministry.

In a bid to further vitalize companies by offering them more development spaces and enable the market to play the decisive role in resource allocation, the “design and development capabilities” in which new energy vehicle manufacturers are required to possess by the Provisions will be removed.

Meanwhile, NEV makers' capacities to guarantee the consistency of their products and the after-sales services will be more highlighted in the future.

As the Provisions requests, the NEV makers which suspend production for 12 months or above should be published by the MIIT. However, the amendments double to period to 24 months, keeping in line with the stipulation of the Measures for the Administration of on-road motor vehicle manufacturers.

Moreover, NEV manufacturers and products which were given market access before the Provisions' formal implementation will no longer observe pertinent requirements set for grace period (from July 1, 2017 to June 30, 2019).

China announces purchase tax exemption for NEVs bought from 2021 to 2022

China will exempt the vehicle purchase tax on new energy vehicles (NEVs) purchased from Jan. 1, 2021 to Dec. 31, 2022 to boost automobile spending, according to an announcement jointly issued by China's Ministry of Finance, State Taxation Administration and Ministry of Industry and Information Technology (MIIT) on April 16.

According to China's policy, NEVs hereby refer to all-electric vehicles, plug-in (including extended-range) hybrid vehicles and fuel cell vehicles.

China automobile policy, China NEV subsidy, China NEV tax exemption, China automotive news

The NEVs available for the tax exemption should be included in a catalogue released by the MIIT and the State Taxation Administration, and consumers who buy the eligible vehicles on or after the issuance date of the catalogue can enjoy the preferential policy. The date showed on automobile sales invoices or other valid certificates is adopted as the purchase date.

Regarding the NEVs that has been listed on the catalogue, their manufacturers or imported vehicle dealers can apply for the tax exemption when submitting paperless automobile information, which will then be checked by the MIIT and handed over to the State Taxation Administration for the final approval.

The authorities also make clear that automobile enterprises should ensure the consistency of the product and paperless information.

China extends NEV subsidies to 2022 with slower phase-out pace

The subsidies for NEV purchases, which were supposed to be stopped by the end of this year, will be extended to 2022, four important ministries of China formally announced on April 23 after the State Council conveyed a same guidance in March.

China automobile policy, China NEV subsidy, China NEV tax exemption, China automotive news

(NIO ES8, photo source: NIO)

Except vehicles equipped with swappable batteries, new energy passenger vehicles applicable to the incentive should be priced RMB300,000 at most.

To slow the pace of subsidy phase-out, the government will in principal cut subsidies on NEVs by 10% this year, by 20% in 2021 and by 30% in 2022, according to the document jointly issued by the Ministry of Finance, the Ministry of Industry and Information Technology (MIIT), the Ministry of Science and Technology and the National Development and Reform Commission.

With regard to the eligible NEVs used in such areas as urban public transport, road passenger transport, taxi, ride-hailing service, environmental sanitation, urban goods delivery, postal expressage, airport and official business of governmental bodies, the subsidies won't be cut this year, while will be decreased by 10% in 2021 and by 20% in 2022. The number of vehicles available for the subsidies should be no more than 2 million units per year.

The policy comes into effect from April 23 with a three-month grace period ending July 22.

China to build IoV standard system for vehicle intelligent management

China is set to establish a standard system of vehicle intelligent management based on the technical status quo of Internet of Vehicles (IoV) industry, future development trend and industrial application needs of traffic management.

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(Photo source: Baidu)

By the end of 2022, the government should complete the research of basic technologies, and develop more than 20 key standards that cover the Intelligent & Connected Vehicle (ICV)-related registration management, identification and safety, etc., and provide supports for such works of IoV-based ICV road tests and city-level IoV pilot validation, according to the Guideline for Developing National Internet of Vehicles Industry Standard System (Vehicle Intelligent Management) (hereinafter referred to as the Guideline) jointly issued by the Ministry of Industry and Information Technology, the the Ministry of Public Security and the Standardization Administration Committee in late April.

Besides, by 2025, a system that supports the standard system of vehicle control management in IoV environment should be built, and over 60 key standards that involve businesses like traffic operation & management, collaborative control of vehicles and roads, and pertinent services should be developed.

The Guideline points out that the ICV identification in IoV environment mainly props up the mutual identity recognition among ICVs, road traffic management system and infrastructures. The standard of this kind involves three aspects:

1) Identity and safety of ICVs

It mainly includes the norms about the coding and general technologies of ICV digital identities. An ICV’s real identity should be ensured by credible digital means.

2) Identity and safety of road traffic management infrastructures

It mainly includes the norms about the general technologies of the road traffic management facilities’ digital identities and the motor vehicle certificate readers.

3) Identity authentication platform and digital certificate

As for this aspect, these standards are included—the technical requirements of motor vehicle identity authentication system and key distribution management system, and the norms about the service interfaces of motor vehicle identity authentication system.

China to roll out technical norms for highway auxiliary facilities adapted to automated driving

China's Ministry of Transport is soliciting public opinion on the Draft Guidelines on the General Technical specifications for Highway Auxiliary Facilities Adapted to Automated Driving (hereinafter referred to as the Draft Guidelines), which is China’s first national-level highway technical norm related to autonomous driving.

China automobile policy, China NEV subsidy, China NEV tax exemption, China automotive news

(Photo source: Auto X)

Highway auxiliary facilities adapted to automated driving generally include traffic safety and highway management facilities. Other pertinent auxiliary facilities contain HD map, positioning facility and roadside computing equipment.

The Draft Guidelines involve the detailed standards and norms about the facilities of positioning, communications, traffic signs, traffic control & induction, traffic perception, roadside computing, as well as energy supply & illumination. Moreover, some specifications at the software level, including HD map, autonomous driving-related detection &service and cybersecurity, are also offered.

The newly-released specifications are applicable to the auxiliary facilities on the autonomous vehicle-only lanes of expressways or first-class highways, and on the autonomous vehicle-only highways.

The Draft Guidelines point out that the relatively closed environment, the level pavement structure, the smooth road alignment and the complete upgradeable safety & management facilities of expressways and first-class highways will make the realization of partial driving or full vehicle automation easier.

Aside from fundamental elements such as physical traffic signs, marks and guard rail, the highway auxiliary facilities in the future will feature vehicle-to-road communication devices, high-precision digital map with accuracy of no more than 0.1 meters, autonomous vehicle-only lanes, observation & supervision reference stations, digital traffic signs & markings as well as control stations for high precision positioning.

China puts off implementation of China emission standard for light-duty vehicles

Chinese policy makers has determined to postpone the implementation of the China emission standard that applies to light-duty vehicles in a bid to ease the pressure on automakers whose sales have been hit hard by the coronavirus outbreak.

The new stricter emission standard available to light-duty vehicles weighted up to 3,500kg will take effect beginning on Jan. 1, 2021, six months later than the supposed-to-be effective date (July 1, 2020), according to a governmental document jointly released by 11 ministries and departments, including the MIIT, the Ministry of Science and Technology and the National Development and Reform Commission.

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According to the document, the China light-duty vehicles produced and imported before this year's July 1, 2020 are allowed to be registered and sold in regions where the China standard has not been implemented. Besides, local governments are not permitted to conduct the new standard ahead of schedule without the approval from the central government.

All light-duty vehicles sold and registered from July 1, 2020 were required to meet the China emission standard, according to a document jointly issued by China's environmental protection department and the AQSIQ on December 23, 2016.

By setting two types of emission limits, the China standard was set to implemented in a systematic fashion. The China 6a was the standard that light-duty vehicles sold and registered from July 1, 2020 supposed to meet, and the China 6b was for July 1, 2023.

It is also worth noting that the latest policy is not applicable to the regions which started to conduct the China standard much earlier than the state's schedule. Some cities or provinces like Beijing, Shenzhen, Shanghai, Tianjin and Guangdong opted to skip the China 6a and directly execute the China 6b standard from July 1, 2019.

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