FRANKFURT -- Global automotive
manufacturers have appealed to the Chinese government to delay
and soften ambitious proposals for electric and hybrid car quotas, a
letter seen by Reuters showed.
The letter is a joint protest against China's new-energy
vehicles proposals, which include a goal for hybrid and
electric cars to make up at least a fifth of vehicle sales by
2025 with a staggered system of quotas beginning in 2018.
"The proposed rules' ambitious enforcement date is not
possible to meet, and if unchanged would lead to a widespread
disruption of the product portfolio of most automakers operating
in China. At a minimum, the mandate needs to be delayed a year
and include additional flexibilities," the letter said.
The letter is addressed to China's Minister of Industry and
Information Technology and dated June 18. It is signed by the American
Automotive Policy Council, the European Automobile
Manufacturers Association, the Japan Automobile
Manufacturers Association and the Korea Automobile
Manufacturers Association and called penalties for
noncompliance unnecessarily excessive.
"Because we have common concerns with the proposed NEV rules,
we have joined together to offer, with utmost respect, six
recommended modifications that address those concerns while
still meeting the goals of those rules and other related
policies," the letter said.
Automakers have requested a delay to implementation of the
quotas, asked for the system of credits to become more flexible
and for China to reconsider penalties for not reaching the
Foreign manufacturers want more credit given to plug-in
hybrid cars, for carmakers to be allowed to "bank" credits
accrued from already sold cars as well as to "carry forward"
credits into subsequent model years.
In addition, they are demanding an ability to purchase NEV
credits from the Chinese government.
They said banning automakers who fail to meet the quotas
from importing and producing non-NEV vehicles would be an
unprecedented step that would lead to significant disruptions
and dislocations within the Chinese and global auto
They also called for equal treatment of Chinese and foreign
makers of EVs and batteries when it comes to
subsidies, which currently do not apply to imported goods.
"This preference for domestic automakers over import
automakers undermines the environmental goals of the regulation,
puts imports at a competitive disadvantage, and risks opening
China up to international trade disputes," the letter said.
The existence of the letter was first reported by Germany's WirtschaftsWoche magazine.