China orders suspension of production of 553 passenger car models

China has ordered the suspension of the production of 553 passenger car models that do not meet the government’s fuel consumption standards, official news agency Xinhua News reported.

The China Vehicle Technology Service Center, citing approval from the Ministry of Industry and Information Technology (MIIT), said the suspension will be implemented from January 1, 2018.

As of January 2016, China’s Phase IV standards established a fleet average target of 5.0 L/100km for new vehicles sold in 2020, equivalent to a 27.5% reduction from the previous target of 6.9 L/100km in 2015. The current Phase IV standard applies to all domestic and imported light-duty passenger vehicles with a total gross weight of <3,500 kg.

Before December 20 of each year, the ministry, which is China’s regulating body, requires automakers to submit the average annual fuel consumption forecast for the next fiscal year.

The affected models include vehicles from major domestic producers, as well as foreign joint ventures, such as FAW-Volkswagen, Beijing Benz Automotive, Chery and Dongfeng Motor Corp.

“With the war on pollution in full swing, China has been pushing for green transportation by toughening emission limits and encouraging the use of new energy vehicles,” Xinhua said.

Last December, the government announced that they would gradually impose stricter emissions limits on new cars. Earlier, a government official also announced that the government was studying the phase-out of vehicles that run on gasoline and diesel fuel. The government also has extended the tax credits for electric vehicles (EV) through 2020.