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CAAM vice president: the Implementation of Dual-Credit Policy should Break Local Protection

Biwen Wang From 盖世汽车| September 29 , 2017

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Shanghai (Gasgoo)-The “dual-credit” policy was finally issued on September 28th. Dong Yang, Vice President of CAAM, pointed out that, “All major auto companies and governments across the world are paying attention to the policy. The implementation of dual-credit policy should break local protection.” He also said that electric vehicles will come into popularization after the implementation of above policy. Local protection should be broken to form a unified market. The most important way to break local protection is to phase out local governments’ subsidies on purchasing vehicles and increase supports on construction of charging infrastructure and charging stations.

Dong also emphasized that the policy was implemented to promote the development of electric vehicles not to prevent the development of foreign brands while to encourage the development of Chinese brands. Besides, the implementation of the policy will face great difficulties with limited preparation time. He also pointed out that the fast implementation of proportion credits in domestic market will force all companies to produce and sell electric vehicles proportionally. It takes at least one year for companies to implement the policy after the policy is promulgated. Currently, only some domestic auto companies could reach the policy requirements and most domestic brands could not reach the requirements.

Besides, Dong Yang also pointed out that companies should pay attention to the changes of market conditions including the decreasing subsidies, competition from foreign brands, popularization of applications and improving requirements from customers. Auto companies should reconsider products’ market position and competition strengths. For example, performance, energy efficiency and fast charging capabilities should also be reconsidered.

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