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Low-speed vehicles facing cost challenges

Date:2008-07-23

Reporter made an interview with WANG YanJun vice Director from Policy Research office of Vehicle Emission Control Center of State Environmental Protection Department, and learnt that emission control related document on low speed vehicles is under drafting. Under the circumstance of Energy-saving and emission-reduction, upgrade of low-speed vehicle is inevitable. But the problem is whether low-speed vehicle makers are prepared to meet the challenges or not?

Price of vehicle priced 20,000Yuan hiked several thousand
Ge Yun shan, a Professor from Beijing Institute of Mechanical and Vehicle Engineering says the major difficulty does not  come from the technical part but from the immaturity of the entire China low speed vehicle industry which limits their ability to meet the price hike brought by the upgrade. Now that most customers are farmers who are very sensitive to price hikes, which is worsen by rise of oil prices, in order to acquire more market low speed vehicle makers have to decrease production costs.
 
Comments from vehicle makers are in accordance with above words.  “As many spare parts of low-speed vehicles have to be imported, if the emission standards is improved for another time the increase of production costs is inevitable.” said by Yuxiaojun design department chief of HeiBao Auto co., Ltd in shandong province BeiQi Foton Cor.,Ltd . Chief Technology engineer Zhao meng says “costs have been increased greatly since National Ⅲ emission standard was implemented. Price of low speed vehicle is around 20,000Yuan. After upgrade of the emission standard, price hike will be several thousands increased by nearly 20%.”
  
Low-speed vehicles need policy support
Restricting low-speed vehicle industry factors are as follows:
First, low-speed vehicle emission systems are upgraded but vehicle structure changes do not come up. Market of such vehicles is very difficult to sustain long time;
Secondly, farmers’ income increases slow which leads to a low purchase capacity.
Thirdly, low speed vehicle application areas are stricken.
Low-speed vehicle industry needs support form government policy so that the industry could be more mature and could produce better vehicles that could be used in the construction of country areas.

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