Trade-in system seen as way to boost new energy vehicle sales
http://www.ecns.cn/business/2016/08-15/222600.shtml
2016-08-15 13:28China Daily
Editor: Feng Shuang
A new energy car at the Beijing auto show in April. Some Chinese electric carmakers are mulling over trade-in plans for new energy vehicles. Zhang Haiyan / For China Daily
Industry leaders are set to fine-tune the mechanics of the NEV sales sector to meet customer expectations
Chinese electric carmakers are introducing trade-in plans for new energy vehicles, a move industry insiders believe will help stimulate the booming sector in the world's largest auto market.
Zhao Changjiang, head of BYD's Beijing and Tianjin sales division, told China Daily that the company is working on a trade-in plan, which will be unveiled as early as 2017.
"The plan will be drafted in accordance with national regulations to meet the customer demand (for trading in their used cars)," he said, declining to offer more details.
BYD is one of the most popular new energy car brands in China, accounting for 30 percent of the market in the first quarter of 2016.
Beijing Business Today reported that BJEV, the new energy vehicle arm of BAIC Group, has similar plans.
"We have been conducting related studies in the field of used new energy cars for several years, and our plan will be made public by the end of the year," said Zhang Yong, general manager of BJEV's sales company.
China has become the world's largest market for new energy vehicles, with 207,000 units, including pure electric ones and plug-in hybrids, sold in the first seven months of the year, according to the China Association of Automobile Manufacturers.
Despite the sales of new cars, the country lacks a system for evaluating and trading in used cars.
Experts agree that the situation is the result of several causes: there are few new energy vehicles in the market - they accounted for about 1 percent of China's total car sales at the end of 2015 - and their evaluation demands more professional expertise than gas-powered cars.
But they believe that the carmakers' move will be an industry model and help speed up the development of a system of evaluation and trade in the used car market. Their trade-in plans will also stimulate new car sales.
Ma Lianhua, a new energy car dealer in Beijing's Tongzhou district, said one of the concerns of potential customers is how to deal with the battery when its warranty expires.
According to a notice four ministries released in early May 2015, carmakers are required to offer an eight-year or 120,000-kilometer warranty for new energy car batteries and electric motor systems.
"If they put in place such a plan, they leave customers with no worries, and surely it will boost our sales," said Ma, an auto reporter-turned car dealer, who is selling about 30 new energy vehicles a month.
Meanwhile, experts warn that national standards for the recycling and disposing of batteries should be established as soon as possible.
According to the China Automotive Technology and Research Center, there will be 120,000 to 170,000 metric tons of used batteries in the country by 2020 based on China's plan to have 5 million electric cars on the roads by then.
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Car sales growth rate accelerates in July
2016-08-15 13:25 China Daily
Editor: Feng Shuang
People view cars at the Beijing auto show in April. The number of passenger car sales in July was the highest monthly growth rate in at least the past 30 months. Zhang Haiyan / For China Daily
China's passenger car sales in July surged 26.3 percent year-on-year, the highest monthly growth rate in at least the past 30 months, but experts say the rate may fall in coming months.
A total of 1.6 million passengers cars were sold last month, bringing the sales in the first seven months combined to 12.64 million units, up 11.1 percent from the same period last year, according to statistics from the China Association of Automobile Manufacturers.
Soaring passenger car sales have pushed total vehicle sales in the first seven months to 14.68 million units, a growth rate of 9.84 percent year-on-year.
At the start of the year, the CAAM estimated the growth rate in 2016 would reach about 6 percent, and Xu Haidong, assistant to the organization's secretary-general, said there are no plans to revise that estimate.
The year-on-year surge in July was because of the poor performance in the same month last year, according to Chen Shihua, a deputy secretary-general at the CAAM.
Some 1.27 million passenger cars were sold in July 2015, which was lower than the same period last year.
In fact, last year car sales saw negative growth for three months in a row, from June to August, partly as a result of the anticipated promulgation of the national policy in September that halved the purchase tax on cars with engines no larger than 1.6 liters.
In most cases the tax was 10 percent of a car's sticker price.
Car sales grew after the policy was introduced - dramatically in certain months. For instance, sales were up 23 percent year-on-year in November and 18 percent in December.
Compared with so much improved performance in the second half of 2015, Chen said the year-on-year growth rates for sales in the remaining months of this year may not be as high as in July.
The favorable policy, which is expected to expire by the end of the year, remains a strong stimulus. In July, 1.14 million cars with engines no larger than 1.6 liters were sold, a 38.6 percent surge year-on-year.
"So far, each month this year, such cars have accounted for 70 percent of passenger car sales, and the policy has played a role in boosting sales," said Chen.
Shi Jianhua, another CAAM deputy secretary-general, said the organization will lobby the government to make the policy permanent if necessary, adding that the auto industry plays an important role in stimulating the Chinese economy.
Chinese brands
In July, 634,000 cars manufactured by Chinese brands were sold, an increase of 27.6 percent on the same period last year.
Sales of sedans grew 12.1 percent, while sales of MPVs surged 38.4 percent. The popularity of SUVs continued, with sales up more than 57 percent, and 3 out of 5 of the best-selling SUVs in the month were produced by Chinese brands.
From January to July, 2.48 million Chinese SUVs were sold, accounting for 46 percent of all Chinese-branded passenger vehicles.
New energy vehicles are maintaining their momentum. In July, 38,000 units were sold, a 93 percent surge year-on-year,with purely electric passenger vehicles accounting for 81 percent of that total.
Through the first seven months of this year, 207,000 new energy vehicles were sold, up 122.8 percent year-on-year. The CAAM expects total sales of such vehicles to reach 700,000 units this year.
Transport authorities in Beijing said the capital city's license plate quota for electric cars for 2016 would be used up by the end of August, indicating a growing acceptance of new-energy vehicles among the capital's car buyers.
