Corporate Average Fuel Consumption and New Energy Vehicle Implementation Method

The "Management of Concurrent Management of Passenger Vehicles' Average Fuel Consumption and New Energy Vehicle Integration" (ie the double-integration policy) was officially implemented on April 1, 2018, which not only had a huge impact on the development of the entire automotive industry. It also has a more complex calculation process. How to correctly understand double-integration policy? We will share with you in detail here.

1

Scope of implementation

Domestic passenger car manufacturers and imported passenger car suppliers

All car companies must implement the fuel consumption requirements, but the annual production scale of 2,000 vehicles or less, the standard will be appropriately lowered; the annual output of car companies in the size of 30,000 or more need to implement new energy requirements. On the other hand, although the dual-point policy currently applies only to the passenger vehicle sector, in January 2018, the Ministry of Industry and Information Technology of the Ministry of Industry and Information Technology organized a seminar on the management system of energy-saving and new-energy commercial vehicle integration points, which means that in the near future Commercial vehicles may also be included in double-point management.

2

execution time

Formally implemented on April 1, 2018, the proportion of new energy vehicles will be set from 2019

Although the double-integration policy has been implemented since April of this year, new energy points were not set until 2019, and the Ministry of Industry and Information Technology has also issued the “Notice on the Work Related to the Administration of Average Fuel Consumption of Passenger Vehicle Enterprises in 2016 and 2017”. The fuel consumption assessment for 2016 to 2017 puts forward clear requirements for compensation. If the company's fuel consumption assessment has negative credits, it can refer to the double-credit policy for transfer between related companies and purchase new energy vehicles, etc., and pay off in the annual bonus assessment. Zero. It can be seen that new energy credits have already played a role at this stage.

3

Double integral

Passenger car average fuel consumption points and corporate new energy vehicle points

4

Fuel consumption calculation

The actual fuel consumption value and target value of passenger vehicle companies are calculated in accordance with the “Method and Index for the Evaluation of Passenger Vehicle Fuel Consumption” (GB 27999-2014). Vehicles with different trim qualities correspond to different target values. New energy vehicles are There is a magnification effect. The ratio between 2016 and 2019 is 134%, 128%, 120%, and 110%, respectively, with a certain buffer, and 100% in 2020 and later.

In general, the target of new passenger vehicle fuel consumption in China is to drop to about 5L/100km in 2020. The pressure on energy saving for enterprises is greater, and new energy vehicles must be developed to meet the requirements.

5

New Energy Automobile Credit Accounting

Among them, the [actual value] corresponds to different points for each model, multiplied by the number of production (imports), and sum of all the sums. The “target value” is based on the number of fuel vehicles produced (imported) by the company and multiplied by the annual ratio to arrive at the result. The proportion in 2019 is 10%, and in 2020 it is 12%. The proportion of new energy vehicles in 2021 and later years is required by the Ministry of Industry and Information Technology.

6

Credit rules and satisfaction requirements

Fuel consumption points : The requirements can be fulfilled through carry-forward, transfer of affiliate companies (such as Jianghuai VW), self-owned new energy vehicle points, or purchase of new energy vehicle points for other companies. New energy vehicle positive points can deduct the same amount of average fuel consumption negative points. The above compensation methods can be used in combination.

(If the fuel consumption point is used in the follow-up year, it shall be carried forward according to a certain percentage. The carry-forward period shall not exceed three years. For positive points in 2018 and previous years, the carry-over ratio shall be 80%; the year 2019 shall be In the subsequent year's positive points, the carryover ratio is 90% for each carry forward.)

New energy vehicle points : can only be satisfied by producing new energy vehicles or purchasing points. The points may not be carried forward, but the new energy vehicle positive points generated in 2019 can be carried forward for a year.

In addition, according to the Notice on Management of Average Fuel Consumption of Passenger Vehicles for 2016-2017 issued by the Ministry of Industry and Information Technology, there are certain differences in the points deductions at different stages, which are summarized as follows:

7

Credit Report and Publicity Process

8

Non-compliance

Fuel consumption points: Enterprises that have not paid for negative points will be subject to the suspension of high fuel consumption product declarations and suspension of production of high fuel consumption products.

New energy vehicle points: Enterprises that have not paid for negative points will be subject to the suspension of production of high fuel-consuming products.

After reading this, did you understand the newly implemented "dual credit" policy?