TEDA forum: subsidy will favor outstanding companies

Posted on 9/12/2017 11:12:12 AM

When France and Britain announced that they will ban new petrol and diesel cars from 2040, speculation arose that China will take similar moves in ten years. Xin Guobin, the vice minister of industry and information technology(MIIT), said at the International Forum (TEDA) on Chinese Automotive Industry Development that his ministry is working with other regulators on a timetable to end production and sales of traditional fossil-fuel-powered vehicles. Besides, Xin also pointed out that the credit systems of CAFC and new energy vehicles will be issued in the near future. All these measures will promote dramatic changes in our country’s auto industry.
Hydrogen vehicles have been a most important development trend.
Xu Chaoqian, deputy director-general at the Ministry of Science and Technology, said that hydrogen-fueled cars have become one of the most important development trends in our country. With so many advantages over other fuel, hydrogen has been highly valued by many countries. The United States have invested as much as 2.45 billion dollars in the hydrogen development and EU has worked out a strategic plan on hydrogen fuel cells. However, there is a large gap between our country and other countries. From now on, our country should not only strengthen our own collaborative innovation, but also try to form international partnership to speed the industry development.
Financial subsidy will favor outstanding and better enterprises.
At the beginning phase to promote new energy vehicles, China has implemented generalized system of preference. All companies could receive a certain subsidies with sales. But as new energy vehicle development enters into new phase, the standard of subsidy becomes much stricter. The policy will become selective and favor some outstanding and more advanced enterprises. In the policy adjustment issued at the end of last year, the subsidy sum depends on the product’s technology, quality and operation, which turned out to be more effective.
NDRC is making intelligent vehicle development strategy.
Wu Wei, a senior official of National Development and Reform Commission, said at the forum that his department is formulating the development strategy for intelligent vehicles to set a direction for our country’s auto industry. Besides, our country will establish intelligent vehicle development platform and shall make basic standards and cultivate the industry ecosystem. Core technology in this field will be included in the major national programs in order to make breakthroughs in such areas as Lidar, high precision sensor and cloud technology platform.
Self-own brands will take the dominance in the future.
Feng Xingya, general manager of Guangzhou Automobile Group, said in his speech that even though global auto manufacturers’ joint ventures in China and self-owned brands are all facing transformation, the latter will be the dominant role in the biggest auto market. At present, the joint ventures seem to show slower response to the market changes and don’t have a good understanding on the policy. On the other side, the core competiveness of self-owned brands is not that strong and they should make great progress in technology development. In the future, GAC will introduce its Trumpchi GS4 PHEV model to its joint ventures.
Other information from the forum
Didi now has 230,000 new energy vehicles in its fleet and the figure are expected to be over 1 million, most of which will be full electric vehicles. Didi will cooperate with other new energy vehicle manufacturers to develop vehicles for ride-sharing service.
Nio, the electric vehicle startup, will start selling its sport-utility vehicle ES8 in mid-December.

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