Shanghai-based Buick dealer Ron Li in late April found himself in an unfamiliar ...
SHANGHAI/BEIJING - Shanghai-based Buick dealer Ron Li in late April found himself in an unfamiliar quandary: how to sell off almost 80 sedans and sport-utility vehicles crowding up his dealership lot.
Encouraged by a central government eager to combat smog, Shanghai is one of 15 cities and provinces to implement new stage-6 standards ahead of the original July 1, 2020 deadline. The sales crisis, which saw May sales plunge 16% from a year earlier, is prompting downward revisions to forecasts for China’s 2019 auto sales that most analysts had thought would be flat or show mild growth.
The central government ramped up its anti-pollution drive last year, urging local authorities to implement stage-6 standards ahead of time. 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. “Why can’t companies be allowed to arrange production and new product rollouts according to the rules?” Shi Jianhua, a senior official at the China Association of Automobile Manufacturers, told a news conference in June.
The process to gain regulatory approval for car models can take six months to a year and vehicle testing agencies such as the China Automotive Technology and Research Center do not have enough labs to meet the sudden surge in demand, multiple industry sources said.That’s meant carmakers have produced fewer stage-6 compliant vehicles than hoped for.
A Ford Motor Co representative said almost all of its line-up was stage-6 compliant. GM did not immediately respond to a request for comment.
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