NEV subsidies slashed 

Subsidies for all-electric passenger cars, which come in at three levels based on range, will be lowered from 25,000 yuan, 45,000 yuan, and 55,000 yuan to 20,000 yuan, 36,000 yuan, and 44,000 yuan, while those for plug-in hybrids will be cut from 30,000 yuan to 24,000 yuan, according to China's new subsidy policy for new-energy vehicles effective January 1, 2017. 

Wang Binggang, an electric vehicle expert who leads the National 863 Energy-saving and New-energy Vehicle Project, said that subsidy reduction is an inevitable trend, and that enterprises must seek new ways to guarantee their sustainable growth. 

He suggested new-energy vehicle manufacturers sharpen their competitive edge by reducing costs while improving value for money.

 

Capital chain a big hurdle facing Internet firms venturing into car manufacturing  

Capital chain will be the biggest obstacle facing Internet companies after they venture into the car manufacturing industry, said automotive expert Jia Xinguang. 

These newcomers, meanwhile, lack manufacturing experience and face high costs and capacity shortage, adding more uncertainties to their profit-making capability. 

Only low-cost vehicles can help them become profitable, though upscale cars display advanced technologies, Jia noted. 

 

Jinan the most congested city in China

Jinan in East China's Shandong Province is the most congested city in China, followed by Harbin and Beijing, according to a report jointly issued by the China Academy of Transportation Sciences and other authoritative organizations on Tuesday.

Other cities on the top 10 list of the most congested cities in 2016 are Chongqing, Guiyang, Shenzhen, Kunming, Hangzhou, Dalian, and Guangzhou. 

 

China's motor vehicle population hits 290 million 

China's motor vehicle population hit 290 million at the end of 2016, according to data released by the Traffic Management Bureau of the Ministry of Public Security on Tuesday. 

Of those, car ownership reached 194 million. 

Every 100 households own 36 private cars on average across the country, with cities like Chengdu, Shenzhen, and Suzhou seeing the figure surpass 70. 

 

Chengdu urges bike sharing firms to buy accident insurance for users

Chengdu, the capital of Sichuan province, is encouraging bike-sharing companies to buy accident insurance for users and fulfill advance compensation responsibilities in case of accidents, according to the city's opinion draft for the development of bike-sharing services released on Monday. 

The new regulation also urges the parking management of shared bikes, real-name registration of users, and establishment of a reward and penalty system.  

 

NEVs to embrace explosive growth

New-energy vehicles (NEVs) are gaining popularity among families, signaling the explosive growth of the niche market. 

In addition to rising market demand, the rise of internationally competitive NEVs from local brands, joint efforts to promote the industrialization of NEVs, and dual point management policies by the Ministry of Industry and Information Technology will give a strong boost to the NEV development, according to Li Weili, director of the manufacturing information department under the State Information Center.

 

Hangzhou to offer virtual quotas for used car turnover 

Hangzhou will offer virtual quotas for used car turnover to the city's used car distributors, said the municipal government. 

The decision is made to alleviate the impact of the license plate restriction policy on the used car market. 

Detailed measures will be jointly formulated by the local transportation authority, public security department, bureau of commerce, and other organizations.  

 

China to recall environmentally defective vehicles

China will implement the national V standards for fuel quality and build an environmentally defective vehicle recall system this year, in an effort to improve the ecological environment. 

The plans were announced at a working conference on quality supervision, inspection and quarantine held Tuesday. 

 

Tianjin to build 90,000-plus new charging piles by 2020

Tianjin plans to build more than 92,000 new charging piles by 2020, according to the city's newly issued plan for the development of charging infrastructure for new-energy or electric vehicles during the 13th five-year plan period. 

A public charging service network featuring broad coverage and high density will be in place by then, with one charging pile to be available every kilometer. 

The accelerated charging network construction is aimed at increasing the adoption of new-energy or electric vehicles. 

 

EV battery recycling system expected in 2020 

An electric vehicle battery recycling system is expected to be put in place by 2020.

Automobile manufacturers will be urged to work with eligible dismantling businesses and remanufacturing enterprises to build an electric car battery recycling system and revise regulations on the administration of recovery and disposal, according to the extended producer responsibility plan released by the State Council on January 3. 

The recovery rate of waste products of key species is predicted to reach 40 percent by 2020 and 50 percent by 2025 on average.  

 

Measures to deepen reform of automotive product certification systems

The Certification and Accreditation Administration of China has announced eight measures to deepen the reform of automotive product certification systems. 

Among the measures are accepting enterprises' testing results to ease their burden; encouraging certification bodies to participate in conformity assessment from the design process; expanding the coverage of CCC to all parallel imported cars; introducing more accreditation bodies; and leveraging the Internet and big data to enhance supervision during and after the certification process. 

 

BAIC, Baidu to collaborate on smart cars

BAIC Motor Corporation., Ltd. (BAIC) and Baidu iV announced at CES 2017 a strategic partnership in the smart car sector. 

Under the agreement, they will introduce models featuring Baidu's integrated connected car solution in the first half of this year, and will put BAIC's Level 3 autonomous car to road tests at the end of this year. 

Their cooperation also covers connected cars, high-precision map, and joint brand operation. 

 

Tencent, Foxconn drop out of FMC's car manufacturing project

It appears to be true that Tencent and Foxconn have dropped out of FMC's car manufacturing project. 

A statement by China Harmony Auto Holding Limited shows that the company will invest around 47.14 million US dollars in FMC Cayman in partnership with Leaguer Auto Technology Limited, Silverhand Investment Limited, and FMC's startup management team. 

The transaction will be completed via Shinny Rise, a subsidiary of Harmony Auto. 

Following the capital increase, Harmony Futeng, a joint venture between Tencent, Foxconn, and Harmony Auto, will no longer have equity ties with FMC Cayman.

 

FAW-Volkswagen reports 17.3 pct sales growth 

FAW-Volkswagen achieved 17.3 percent growth in sales last year, with deliveries surpassing 1,315,000 cars. 

The carmaker set its annual sales target for 2016 at 1,300,000 cars early last year. 

Continuous technical innovation and product revamp made a great contribution to the auto manufacturer's booming sales. 

 

Chery to launch five new cars in 2017 

Chery is planning to introduce five new models this year. 

One of them will be a new SUV inspired by the concept beta concept vehicle. Internally codenamed the T17, the model is slated to hit the market in the third quarter of 2017. 

The four other cars will be the Arrizo 5 1.5T, new Arrizo 5, Tiggo 7 1.5T DCT, and new Tiggo 7. 

 

GAC FCA reports 260 pct rise in sales of locally-produced cars

GAC Fiat Chrysler Automobiles Co., Ltd. (GAC FCA) reported 260 percent growth in sales of locally-produced cars.

This pushed the company's total sales to a record 179,872 vehicles last year. 

Deliveries of home-made vehicles accounted for 79% of the carmaker's total, coming in at 142,216 units.