GM, Hyundai, Vw see benefits if China will tighten emissions standards

Article by Christian A., on January 28, 2013

General Motors Co., Volkswagen, and Hyundai stand to benefit if the Chinese government pursues its plan to tighten vehicle limitations and emissions standards to the same level as Europe’s. These new rules will probably encourage the purchase of new cars. Foreign automakers have the advantage since they can build vehicles that meet the more stringent worldwide emission requirements.

Ashvin Chotai, managing director of Intelligence Automotive Asia in London, said that there won’t be any problem when buying cars from overseas car and truck makers since these can meet very advanced emission standards.

He clarified that Chinese automakers will be faced with this problem then. VW spokesman Christoph Ludewig said that the company is “well prepared” to meet stricter vehicle standards and that since 2005, it has already lowered the fuel consumption and emissions of its fleets by 20%.

China Minzu Securities Co. said that more owners may go to BYD Co., partly owned by Warren Buffett's Berkshire Hathaway Inc. and Beiqi Foton Motor Co. as governments hasten to replace their old bus fleets with electric models. So far, just the southern city of Shenzhen is using BYD's K9 bus but according to the automaker, it is planning for other Chinese cities to get the all-electric vehicle when it gets the support of the government.

Last month, 160 electric buses were delivered by Beiqi Foton to Beijing. The largest shareholder of Beiqi Foton is the government. In addition, BYD can benefit from the subsidies that would likely be given for alternative-fuel passenger vehicles.

The automaker is the supplier of 500 E6 electric cars for the Shenzhen's police, on top of the 300 E6 taxis that are already carrying passengers to their destination in the city's streets. Earlier this month, the company released ads on newspapers to claim that tailpipe emissions will decline by 27% in China if BYD's electric vehicles replaced all of the taxis and public buses in the country.

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Topics: gm, vw, hyundai, china

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