· Eliminating 13 million yellow-label vehicles, China’s independent car companies will benefit

A few days ago, Yang Jian, executive editor of "Automotive News - China", commented "Is Beijing ready to eliminate 13 million old cars?" (Is Beijing ready to scrap 13 million clunkers?), commented on the clearing of the yellow label car and old car elimination tasks in 2014. The following is the translation of Gasgoo.com.
For decades, the Chinese government has promoted rapid economic development and tolerated at the expense of environmental degradation.
But now, the leadership team led by President Xi Jinping has signs that he hopes to make up for it.
Last month the Chinese government announced a plan to improve vehicle fuel economy and reduce emissions by phasing out aging light vehicles. If the project is strictly implemented, it will have a huge impact on the Chinese auto industry.
According to government statistics, as of the end of 2013, more than 13 million “yellow-label vehicles” – passenger cars and trucks that failed to meet emission standards – are still in use.
Beijing plans to phase out 6 million “yellow-label vehicles” this year and set a goal of eliminating the remaining old vehicles in the next three years.
The government did not disclose the main body of the "yellow label car." However, Zeng Zhiling, director of automotive market research for LMC Automotive Asia Pacific, said that it mainly includes light trucks, light passenger cars and micro-facets.
How can the Chinese government eliminate so many vehicles in such a short period of time? People can't help but start to guess, this simply requires the strength of Hercules Hercules to complete the above tasks.
However, the attitude of the government has been serious. In order to ensure implementation, Beijing has set targets for 31 provinces, municipalities and autonomous regions in China.
For example, Hebei Province in North China, China – is plagued by smoke pollution from local steel mills, cement plants and power plants – 660,000 vehicles will be phased out this year.
According to the plan, if the local government fails to complete the target, the central government will let it be responsible for it.
This is a good news for China's own car companies, the main producers of China's light commercial vehicles. In order to complete the quota for the elimination of old vehicles, the local government must provide a cash incentive policy for used cars.
At the same time as the commercial vehicle fleet in China is updated, the sales of independent car companies will be greatly improved.
And for multinational parts suppliers may also be good news. As emissions standards tighten, market demand for fuel-efficient turbocharged engines and clean diesel engines will increase. Automakers are also increasingly demanding the best technology.

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