M it the regulation that will apply from 01/01/2021, car manufacturers, including the Joint ventures with foreign participation, collect NEV points. This amounts to 14 percent of the production volume and will increase to 16 percent in 2022 and 18 percent in 2023. The points are calculated using a complex formula based on energy efficiency and range as well as production volume. There are negative points for the production of vehicles with combustion engines, which must be compensated for with NEV points. For comparison, the rates were ten percent in 2019 and twelve percent in 2020.
No incentives for engine improvements
New to the NEV regulation from 2021 is that full hybrid vehicles will receive fewer negative points They are still regarded as models with a combustion engine, but will in future be run as 'passenger cars with low fuel consumption'. With the change, the ministry is responding to criticism that there were hardly any incentives for manufacturers to improve the efficiency of internal combustion engines. According to the Reuters news agency, it should also be possible to gradually manufacture more cheaper hybrid models with gasoline engines than more expensive fully electric vehicles from 2021 to 2023.
However, there are also concerns about the amendment to the directive. The higher hybrid quota could reduce sales of all-electric vehicles - also because the switch to plug-in hybrids is easier and cheaper for customers.
Toyota and Honda can be happy
The beneficiaries of this change are Toyota and Honda, who are relying heavily on hybrid technology rather than battery-electric models. Local car manufacturers such as Geely, Guangzhou and the supplier Hunan will also benefit from the change in guidelines. China hopes NEVs will account for around a quarter of all vehicles sold in the country by 2025.