In recent developments, the National Development and Reform Commission announced on its official website that certain vehicles failed to meet the requirements of GB18352.2-2001 "Light Vehicle Pollutant Emission Limits and Measurement Methods" and GB17691-2001 "Vehicle Compression Ignition Engine Pollutant Emission Limits and Measurement Methods for the Second Phase." As a result, these non-compliant models will be banned from sale by July 1st.
According to reports, over 50 manufacturers have failed to meet these emission standards. Although most affected models have already been discontinued, industry insiders note that the tightening of emission regulations is becoming a major challenge for Chinese automakers.
To comply with the new diesel emission standards, Great Wall Motor has invested 300 million yuan in upgrading technology, specifically targeting the suspension of certain diesel pickup truck models. According to Shang Yugui, head of the company’s public relations department, this investment is aimed at ensuring compliance with national standards.
Shang emphasized that the discontinuation of specific models would not significantly impact the company, as Great Wall Motor operates more than 20 product lines. However, the cost of compliance is expected to lead to higher vehicle prices. For example, the current price of the Deere model is around 74,800 yuan, but it may rise to approximately 80,000 yuan after meeting the national III standard.
Despite these efforts, some experts believe that even with technological upgrades, Great Wall Motors still faces challenges in fully meeting the national III standards due to limitations in current technology. In response, the company is shifting focus toward rural markets or international exports.
Meanwhile, Dongfeng Honda reported that its 2005 CR-V model already meets the national IV emission standards without any issues. Shenlong also stated that all its products, except the Beverly 8V, are in compliance with government emission requirements.
However, the implementation of stricter emission standards is not just about vehicle technology—it also depends on fuel quality. Industry professionals point out that while automakers can improve their technologies, the success of these upgrades hinges on the availability of high-quality fuels that meet the required standards.
Sinopec representatives confirmed that China has the capability to produce oils equivalent to European standards. However, the transition requires significant capital investment and faces limited market demand for premium diesel, which has slowed down large-scale upgrades.
From an international perspective, moving from Euro I to Euro II standards involved minimal technological changes. But reaching Euro III or Euro IV levels requires comprehensive improvements across various technologies, including fuel injection systems, electronic control units, and exhaust treatment systems.
As China moves forward with its emission standards—fully implementing the Light Vehicle III standard since July 1, 2007, and planning to adopt the National IV standard by July 1, 2010—the pressure on domestic automakers is increasing. This shift could accelerate the survival of the fittest among local manufacturers, pushing those unable to adapt out of the market.
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