The “double points” policy that has been popular in the automotive industry has finally got new trends. On June 13, the website of the Legislative Affairs Office of the State Council issued the “Parallel Management Measures for the Average Fuel Consumption of Passenger Vehicle Enterprises and New Energy Vehicles (Consultation Draft)” (hereinafter referred to as “Measures”), and proposed new energy sources from 2018 to 2020. The proportion of automobile integrals is 8%, 10%, and 12%, respectively, and the proportion of new energy produced by enterprises has become a clear red line.
What is the "double points" policy?
The “double points” stipulated in the “Measures” refer to the average fuel consumption points of passenger car companies and the new energy vehicle points of passenger car enterprises.
The average fuel consumption score of a passenger car enterprise refers to the difference between the standard value of the average fuel consumption of the enterprise and the actual value, and the product of the production or import volume of the passenger car of the enterprise. Fuel consumption below the standard value can produce positive points, which is intended to encourage traditional fuel vehicles to save energy.
The new energy vehicle integral of the passenger car enterprise refers to the difference between the actual value of the enterprise new energy vehicle integral and the target value. The actual value is the product of the points corresponding to the sales of new energy vehicles and the output of new energy vehicles.
This is the second solicitation of the "Measures". Whether the two points are independently managed or parallel, before the parties have their own interests, the debate lasted for a long time. The point system management has almost a directional impact on the automotive industry.
With the determination of the double-point system, the above regulations mean that the auto companies themselves must be able to produce and sell enough new energy vehicles. Otherwise, they can only purchase new energy vehicles from other companies, or reduce their own traditional fuel vehicle production.
The industry believes that the implementation of "parallel management measures" for fuel consumption and new energy vehicles will shift the new energy vehicles from "policy-driven" to "regulatory-driven". Since the “parallel management approach” is equivalent to a mandatory regulation, if the enterprise fails to reach the point, it can only buy the points, otherwise it will stop production and will be punished. Although this will make the car companies feel uncomfortable, but want new energy. To achieve sustainable development, cars must go in this direction and must compete with traditional cars.
The point system is directly linked to fuel consumption
The point system will be directly linked to the company's fuel consumption. According to the previous fuel consumption standard set by the Ministry of Industry and Information Technology, from 2015 to 2020, the average fuel consumption target of the vehicle enterprises in each year is 6.9L, 6.7L, 6.4L, 6L, 5.5L and 5L, respectively. How big is the difficulty in achieving this goal?
Xu Yanhua, deputy secretary general of the China Association of Automobile Manufacturers, said that after 2018, the annual reduction of 100 kilometers per 100 kilometers is still very big. For auto companies, it is very difficult to challenge the 5L/100km fuel consumption red line. “5L/100km cannot be achieved by engine technology alone. Developing hybrid technology and balancing fuel consumption with new energy vehicles are the next must. The road is also the development direction of the automotive industry."
The "Measures" also proposed that from 2018 to 2020, passenger car companies' new energy vehicle points ratio requirements are 8%, 10%, 12%. The requirements for the proportion of new energy vehicles after 2020 will be separately formulated and announced by the Ministry of Industry and Information Technology.
The hard requirement of this new energy ratio is undoubtedly a big problem for auto companies. Xu Yanhua, deputy secretary general of China Association of Automobile Manufacturers, pointed out that according to the actual sales of new energy vehicles in 2016, the actual integral value of new energy industry in 2016 was about 3%. In more than a year, it is undoubtedly difficult to increase the proportion of new energy to 8% in 2018.
According to sources, the original intention of the policy is to ensure that China's new energy vehicles will reach 2 million vehicles by 2020.

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