It's an interesting point you bring up @asb83 because I was wondering how the China 5 sell off could affect the EV's when one required a lottery and the EV's don't.
I guess it depends where you live as to if a lottery to buy is required.
Though overall, I don't see any excuse really given what we read in the next two paragraphs in the Galaxy announcement. @bilulu pay attention, this is about demand in the supply chain.
"The China Association of Automobile Manufacturers (“CAAM”reported total NEV production and sales of c.347,000 and c.352,000 vehicles respectively in Q2 2019, representing growth of 32% and 31% year-on-year (“YoY”
. Total production and sales of battery electric vehicles (“BEV”
throughout this period was c.289,000 (+41% growth YoY) and c. 283,000 (+35% growth YoY), respectively. Total production and sales of plug-in hybrid vehicles (“PHEV”
for the period was c.58,000 (flat YoY) and c.69,000 (+17% growth YoY), respectively. Growth in NEV volumes showed signs of decelerating in May, due to a transition into the new NEV subsidy framework and emissions standard, which resulted in sharp discounting on ICE vehicles that will not meet the new mandatory emissions standards. Despite this, growth rebounded strongly in June, with production and sales growth in the BEV subcategory being 78% YoY and 107% YoY, respectively. China has announced the implementation of new vehicle emission standards in a number of provincial regions that include Beijing, Shanghai, Tianjin, Hebei, and Guangdong. Starting July 2019, sales and registrations of new vehicles, and all existing vehicles in these regions will have to comply with some of the world's strictest rules on automobile pollutants. The new rules demand substantially fewer pollutants such as nitrogen oxides and particulate matters and introduce limits on particulates and ammonia. Further, at the end of June, the Ministry of Finance and the State Tax Administration jointly announced an extension to the vehicle sales tax exemption on NEVs until the end of 2020. The exemption from the 10% vehicle sales tax is expected to mitigate a substantial portion of the subsidy reduction."
It's all growth and positive news, and as the China 6 emissions roll out across the country next year we can probably expect further increase in EV adoption, particularly in the BEV category.
Also, something else worth noting:
China 6b targets reductions of 50% for hydrocarbons, 40% for NOx and 33% for PM over Euro 6 levels
I did some further digging into what's been going on with this transition from China 5 to China 6 and came across the following article with points I'd like to highlight to you @bilulu
"People were still coming in but weren’t buying the stage-5 cars, Li said.
“Customers didn’t know how long they could drive China-5 cars or whether they would be able to resell them in the future. And to be honest, we didn’t know either.”
To cope, his dealership in May slashed stage-5 vehicle prices by as much as 30 percent, participating in what dealers and industry executives have called unprecedented widespread discounting as China’s auto sales headed for their worst-ever monthly drop.
Encouraged by a government eager to combat smog, Shanghai is one of 15 cities and provinces to adopt new stage-6 standards ahead of the original July 1, 2020, deadline.
Checks with employees at about 20 dealerships in Shanghai, Beijing and the provinces of Jiangsu and Zhejiang, which have also brought forward implementation of new standards, found that stage-5 cars had been a tough sell.
Some offered discounts of more than $2,000 when compared to the same model meeting stage-6 standards. One Peugeot dealership in Shanghai even went so far as to offer a free 301 compact to customers who bought a 5008 SUV.
While a slowing economy and the trade war with the United States were initially held responsible for slides in sales since April, most of the blame is now being laid on the poorly managed fast-tracking of new rules by the 15 cities and provinces, which account for more than 60 percent of sales in the world’s largest auto market.
In China, smog has become a major source of public discontent, and Beijing declared a “war on pollution” five years ago, seeking to mitigate the environmental damage done during four decades of breakneck economic growth.
To that end, it has aggressively pursued the adoption of electric cars, and its stage-6 emissions standards are regarded as the most stringent in the world.
The southern province of Hainan was the first to jump on the bandwagon, saying it was thinking of doing so as early as November 2018.
This set off a round of announcements from other provinces and cities, which began bringing their implementation dates forward — though the timing varied from January to March to July. Some, including Hainan, later postponed after local dealers complained they wouldn’t be able to sell off inventories.
“The implementation date of China-6 rules was fixed, so why has it been accelerated in a way that doesn’t give companies sufficient time?” he added in rare criticism of government moves.
Yes, why has it indeed? Will the rules change again rapidly. Highly likely.
I'd encourage everyone to read the full article.
LINK
What do you think @bilulu?
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