China China announces measures concerning passenger vehicle fuel consumption, new energy vehicle credits

China’s Ministry of Industry and Information Technology on February 7, 2021 published a Circular concerning the Management of Passenger Vehicle Corporate Average Fuel Consumption and New Energy Vehicle Credits of 2020 (the “Circular”), in accordance with the Decision on a Revision of the “Measures on the Dual Management of Passenger Vehicle Corporate Average Fuel Consumption and New Energy Vehicle Credits” (Ministry of Industry and Information Technology, Ministry of Finance, Ministry of Commerce, General Administration of Customs and State Administration for Market Regulation Decree No. 53) and other relevant regulations. The ministry issued the Circular to actively address the impact of Covid-19 spreading as well as realizing wholesome and sustainable development of the automotive industry, in response to the central government’s comprehensive policy that demands promoting the socio-economic development of Hubei province. The Circular stipulates the following:

The fuel consumption values of vehicles equipped as standard with a start-stop system, braking energy recovery system or gear shift indicator can be reduced by an amount up to the specified limit as shown below (the reduction amounts can be added up):

  • The reduction limit for vehicles equipped with a start-stop system: 0.15 L/100 km
  • The reduction limit for vehicles equipped with a braking energy recovery system and a REESS (Rechargeable Energy Storage System) with a nominal voltage of 12V: 0.05 L/100 km
  • The reduction limit for vehicles equipped with a braking energy recovery system and a REESS with a nominal voltage of more than 12V: 0.15 L/100 km
  • The reduction limit for vehicles equipped with a gear shift indicator: 0.1 L/100 km

Negative credits of new energy vehicles of 2020 can be offset by positive credits of new energy vehicles of 2021.

Negative credits of average fuel consumption and new energy vehicles of 2020 are reduced to 80 percent if the manufacturer of the vehicles is registered in Hubei province.

An expert said the measures set out in the Circular guarantee orderly, stable operations of the credit market and help thorough implementation of the New Energy Vehicle Industry Development Plan (2021–2035).

The full text of the Circular (in Chinese) is available on this page of the Ministry of Industry and Information Technology’s website:

https://www.miit.gov.cn/xwdt/gxdt/sjdt/art/2021/art_fb702f5ca1914aeb80a6f86b6992f95d.html