Dongfeng Chaochai Chairman Fan Zhong Calls for Enhanced Light Vehicle Emissions Upgrade

“Why is the diesel vehicle's emissions upgraded, heavy truck conversions are in place, and light trucks are almost the same? Not heavy truck manufacturers and heavy truck users have strong environmental awareness and high moral standards. Light truck manufacturers and light truck users have poor awareness. The underlying reason is that light diesel vehicles Emissions upgrading costs account for a high proportion of vehicle prices, and manufacturers and users have difficulty digesting them.” On September 1, at the 13th internal combustion engine and parts exhibition, Fan Zhong, chairman of Dongfeng Chaochai Power Co., Ltd., was repeatedly Wang Ruixiang, President of China Federation of Machinery Industry, and He Guangyuan, former Minister of Machinery Industry, explained his point of view.

China's fourth-generation emission upgrade of China's light-duty diesel vehicles has been postponed many times, and there are still many problems. After the relevant national ministries intensified supervision in May of this year, the non-compliance of light diesel vehicles was not sold. Correspondingly, the sales volume of light-duty diesel engine manufacturers has also been drastically reduced and it is difficult to achieve a satisfactory degree of sales. Chaochai, one of the major manufacturers of light diesel engines in China, is also experiencing a difficult period. Fan Zhong thinks a lot about this. In order to expedite the upgrade of light vehicles and promote the development of environmental protection as soon as possible, he proposed three policy recommendations and hoped that the reporter could help with the appeal.

First, appropriate subsidies should be provided for the upgrade of light diesel vehicle emissions.

The tonnage of heavy trucks is relatively large, the transportation distance is relatively long, and the profit rate is relatively high. The increase in the cost of heavy truck environmental protection standards is relatively low as a proportion of the entire vehicle price, so heavy truck users are more likely to accept the cost increase caused by the emission upgrade. For users of light trucks and medium-sized passenger vehicles, the increased cost of emission compliance accounts for a large proportion of the entire vehicle purchase cost. For example, if a heavy truck costs 200,000 to 300,000 yuan, the emission upgrade will increase by 30,000 yuan, and the cost will increase by about 10%; while for a light truck, 60,000 to 80,000 yuan, the emission upgrade will need to increase by 15,000 to 2 million yuan. Increase by more than 20%.

Fan Zhong believes that emissions are an issue for the entire society. To allow lighter diesel vehicles to meet standards and reduce emissions, the central government and local governments should provide some subsidies. At present, some local governments have introduced some subsidy policies, but they are far from enough, and they cannot stimulate the enthusiasm of light vehicle users to achieve emission upgrades. Government supervision is definitely necessary. Only supervision and no guidance will cause serious problems. For example, falsification will occur.

Second, adjust light vehicle freight.

Fan Zhong said that light trucks are mostly short-haul transportation, with small tonnage, short distances, low freight, and low profit margins. If coupled with the increase in the cost of emission upgrades, light-card transport users will find it difficult to make money. Nobody will do without making money, but urban logistics cannot use heavy trucks. The demand for light trucks still exists. The government can reduce the cost of logistics through the reduction of light truck tolls, etc. In addition, it can guide the lighter trucks to increase their freight rates properly, and profits will be met only if there are profits.

Third, the yellow label car modification policy was introduced.

Fan Zhong pointed out that all localities are now vigorously eliminating yellow-label vehicles. However, some yellow-label vehicles are only manufactured in the past two years. It will take several years until these vehicles are scrapped. These vehicles also need to emit large amounts of pollutants. How to quickly solve this problem, he suggested that the elimination of yellow-labeled cars should not be eliminated as a whole and a yellow-labeled car modification policy should be introduced.

In the late 1980s and early 1990s, China's transportation market had experienced a phenomenon of “steam reforming diesel”. To improve the transportation efficiency, the petrol car was changed to a diesel car. Users liked it very much. At that time the country was allowed. Fan Zhong believes that it is now possible to model the engine as an environmentally friendly engine that meets the standards of “Cars for Fuel” and upgrade the engine to an eco-friendly car. If the vehicle is scrapped simply because the engine is not up to standard, then it is a huge waste of resources for the standard transmissions, axles, and so on.

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