China Auto Industry National VI B Emission Standard
In December 2016, China’s national light-duty emissions and measurement methods standard, the China 6 Standard, was issued, with the first phase, 6A, taking effect on July 1, 2020. Beginning July 1, 2023, the second phase of the National Stage 6 standard was implemented, per the announcement made by China’s Ministry of Ecology and Environment (MEE). Non-compliant vehicles are no longer allowed to be produced, imported, or sold in China. The ministry granted a 6-month grace period, ending December 31, for the sale of light-duty vehicles which undergo and comply with pollution monitoring tests.
The Chinese government has prioritized efforts to make traditional vehicles more energy efficient and speed development of new energy vehicles to reduce transportation-related carbon emissions, which account for roughly 10% of the country’s total carbon emissions.
According to the China Association of Automobile Manufacturers (CAAM), more than 95% of passenger vehicles sold in China comply with the initial National Emission Standards VI B since their implementation in 2020. Beijing, Shanghai, Guangzhou, and Shenzhen have taken the lead in implementing the standard.
Notably, heavy-duty trucks are better prepared for the upgraded National VI B Emission Standard than light-duty trucks. OEMs of heavy-duty trucks (>31,000 lbs), which are mostly state-owned or with state-owned shareholders, have aggressively invested in clean technologies and solutions since the issuance of the National VI emission standard for diesel-fueled heavy-duty vehicles (GB17691-2018) in 2018 while light-duty truck manufacturers have been less proactive.
As a result, the industry is concerned about the high market inventory of light-duty trucks (<13,000 lbs) that cannot meet the upgraded National VI B Emission Standard. Compared to heavy-duty trucks, light-duty trucks have lower margins and have been impacted more by the relatively weak economy. Manufacturers are now faced with the need to find clean and economic solutions to upgrade the current light-duty truck inventory.
The China’s Passenger Vehicle Association data shows the sales of internal combustion engine vehicles in the Chinese market have decreased, totaling 15.2 million in 2022, a year-on-year decrease of 16%, and a market share of 74.4%. China sold 6.9 million new energy vehicles in 2022, with a y-o-y increase of 93.4%, the market share was 25.6%, China remains the world’s largest new energy vehicle manufacturer for an eighth consecutive year.
For further information, please contact a representative from the CS China Auto Team:
1. Beijing: Ms. Jessica Tan, feng.tan@trade.gov
2. Guangzhou: Mr. Karic Chen, karic.chen@trade.gov
3. Shanghai: Ms. Lisa Ouyang, lisa.ouyang@trade.gov
4. Shenyang: Ms. Dongmei Sun, Dongmei.sun@trade.gov
5. Wuhan: Ms. Catherine Le, Catherine.le@trade.gov