China shifts automotive strategy to lighten controls on fuel-efficient hybrids

July 17, 2019

The Chinese government’s Ministry of Industry and Information Technology, which oversees automotive policy, is reported to have plans to amend its automotive strategy to lighten controls on fuel-efficient hybrid vehicles compared with gasoline or diesel vehicles, according to Nikkei Asian Review. Under current regulations, hybrid vehicles are grouped with conventional gasoline vehicles. If the amendment goes ahead, they would still be considered fossil-fuel-powered but reclassified as ‘low-fuel-consumption passenger vehicles.’ 

Automakers are currently required to produce 20,000 high-performance electric vehicles for every 1 million hybrids they produce, under a point-based quota system. Under the newly-proposed regulations, automakers would need to produce only 6,000 electric vehicles per million hybrids, while the requirement for gasoline vehicles would rise to 29,000 for every 1 million gasoline vehicles. 

The new development is expected to be especially beneficial for Japanese automakers Toyota Motor and Honda Motor, who together sold more than 2 million hybrids worldwide in 2018, accounting for the vast majority of the 2.29 million produced that year, according to IHS Markit. Hybrid sales are said to have accounted for just over 10% of the nearly 1.49 million vehicles sold in China by Toyota in 2018; the automaker now aims to boost this to above 30% by 2020. 

The proposed amendments to the regulations also includes measures to promote hydrogen fuel cell vehicles. Toyota has recently been partnering with a number of Chinese companies, including Beijing Automotive Group, in the development of such vehicles. 

Further, the proposed amendments would allow automakers that beat the quota in one year carry over points to the following year under certain conditions. The government plans to continue increasing the quota, which will rise to 12% in 2020 and by two percentage points each year between 2021 and 2023.

Latest Industry News

Download the latest issue of PM Review

Our latest issue is now available to download in PDF format, free of charge.

As well as an extensive Powder Metallurgy industry news section, this 96-page issue includes the following exclusive articles and reports:

  • Teardown showcases applications for PM in hybrid electric vehicle market
  • Characterising powders for Cold Isostatic Pressing applications
  • JPMA Awards 2019: Showcasing innovations in PM for high volume applications
  • Euro PM2019: Manipulating the sintered microstructures of hard materials
  • More information

Industry News


Sign up to our free e-newsletter, sent weekly to industry professionals around the world. We'll also let you know each time a new issue of PM Review magazine is available.

Subscribe for a FREE digital magazine

PM Review is the leading international magazine for the Powder Metallurgy industry.
Published four times a year, it is available as a free download or through a print subscription

Connect with us

Powder Metallurgy:The original net-shape production process

Powder Metallurgy components are relied upon by a wide variety of manufacturing industries, from automotive to power tools, household appliances, chemical engineering, filtration and more.

The main reason for the technology’s success is its cost-effectiveness at producing high volumes of net-shape components, combined with its ability to allow the manufacture of products that, because of the production processes, simply cannot be manufactured by other methods.

To discover more about how the technology has revolutionised component production, browse our Introduction to Powder Metallurgy.

Latest industry news