China intends to lower threshold for automakers to get NEV building qualification

Shanghai (Gasgoo)- China's Ministry of Industry and Information Technology (MIIT) is soliciting public opinion on the amended Provisions on the Access Administration of New Energy Vehicle Manufacturers and Products (the Consultation Paper), which is expected to lower the technical threshold for automakers to get NEV building qualification and promote the separation of car R&D and manufacture.

According to the Provisions, a new energy vehicle manufacturer who applies for access shall have “the design and development capability, production capacity, capacity to guarantee the consistency of its products, and capacity to guarantee the after-sales services and product safety required for manufacturing new energy vehicle products”. In the latest Consultation Paper, the “design and development capability” is replaced by the “technical support capability”.

This is a significant change indicating that the “design and development capability” will no longer be the core standard to assess an automaker's car building ability. The Provisions not only requested a carmaker to have an independent R&D entity, but also set standards to its technology development management, development tools and the abilities of trial production and certification. Thus, the replacement is likely to reduce the technical barriers for automakers to get green lights before car building.

Meanwhile, the Consultation Paper also notes the capability of testing complete vehicles and self-made components a NEV manufacture should possess, and the technical requirements on evaluating and confirming such things as the vehicle power performance and economy.

Besides, the Requirements for the Access Examination of New Energy Vehicle Manufacturers and Products, an annex to the Provisions, will have the item number of a NEV maker's required abilities that should be reviewed by authority decreased to 11 from 17.

Some analysists said this amendment will help promote the separation of car R&D and manufacture, the business integration among automakers and the development of new business models like dedicated contract manufacturer.

The Provisions was issued by the MIIT in January 2017 for the purposes of implementing the national strategy for the development of NEVs, standardizing the production of new energy vehicles, protecting the life and property safety and public safety, and promoting the sustained and sound development of the new energy vehicle industry. The Ministry said the paper is amended for a better adoption to China’s NEV industry development demands.