Gasgoo.com (Shanghai Jan 25th)— The Ministry of Industry and Information Technology officially issuedRecommended model list for Popularization and Application of Alternative Energy Vehicles on 14th January, containing 247 models. The old list has been abolished on 1st, January. In Cui Dongshu, General Secretary of CPCA’s view, it marks the alternative energy vehicles have developed into a regulated way during the “13th-five” period.
List downsizes 1200%
The “new list” downsizes from 3409 to 247 models, minimizing models up to more than 12 times. According to Cui, it’s quite necessary to simplify list and regulate the market. The “old list” derived from the “Ten Cities and One Thousand Alternative Energy Vehicles” Project in 2009, containing many models while taking no positive effects in the promotion of the market. The project also comes in vain. “The fast development of products’ technology and quick regulation of relevant standards forms a great gap between products’ design and current stipulation. We should reexamine products and the standards; only in this way can we effectively promote product upgrading and technological renovation.”
Although re-declaration adds enterprises’ burden to some degree, Cui believes the companies taking announcements for decorative use or having no actual developments in alternative energy vehicles will suffer more. “It’s not difficult to upgrade qualifying models and meet standards. The inputting costs will be offset from subsidies.”
The second list will be published in February
The recommended list isn’t a threshold for alternative energy vehicles, and current models are allowed to produce and sell. But the range for subsidized models is downsizing greatly.
According to 2016 policy, BEV with ranges between 100-150 kilometers and 150-250 kilometers will enjoy a subsidiary of 25,000 and 45,000RMB respectively; models with ranges more than 250 kilometers will be subsidized to 55,000 RMB. For models which cannot enter into the list before the transition period, companies will pay for the subsidy to avoid the possible price violation, which will aggravate costs greatly.
Therefore, the smooth and early entering into the list is crucial to alternative energy vehicle enterprises. The first list contains 53 models produced by 12 companies, including BAIC’s 10 BEV models and BYD’s 12 models.
"The second list will be published soon, perhaps in February. "One insider told reporters on 20th, January.
Change of Policies?
While models are striving to squeeze in, listed models are busying upgrading. According to requirements in “13th-five” period, reduced subsidies mainly concentrate on models with range between 100-150 kilometers. The listed Know Beans D2 also transmits a signal to the market that national policy is increasingly supporting micro-models.
While in China EV100’s General Director,Chen Qingtai’s view, companies should find a way to strengthen themselves. The current market is relying too much on the government. “The changes in policies directly influence vehicles’performance. Only companies with strong technological supports can live long.” He said.
