China III standards in force today raise CV prices

Shanghai, July 1 (Gasgoo.com) The China III emission standards came into force nationwide as of July 1, pushing up the prices of commercial vehicles (CVs) in the Chinese market, said xinhuanet.com today.

The country's automakers have launched new products that meet the China III standards by using upgraded engines. Nanjing Iveco (Naveco) is set to sell its new light commercial vehicle Power Daily, which features the new generation the powerful 3.0L F1C engine and the second generation BOSCH common-rail electric injection system. The engine, capable of 107KW, can reduce fuel consumption by 10% and can be upgraded to meet the Euro V standards.

In the heavy truck segment, Sinotruk, China's largest truck-maker, has developed the 12L engine and common-rail China III engine, and all its vehicles in 2009 will begin to be powered by these engines.

As new vehicles have to be equipped with China III engines, the manufacturing costs of Chinese car-makers will increase considerably, and this will drive up the prices of their products. The prices of all commercial vehicles have begun to rise. The heavy trucks of Sinotruk have their prices marked up by 30,000 yuan ($4,374), and the price of Naveco's Power Daily has grown by 20,000 yuan.

The China III standards will pose a big challenge to the pickup and mini-car sectors, which have also raised their prices. SAIC-GM-Wuling Auto's min vans have become more expensive by a range between 10,000 yuan and 50,000 yuan.