Eleven Chinese eastern cities including Beijing, Tianjin and cities in Hebei Province will officially implement the State-V emissions standards starting from April 1, 2016. All diesel engine heavy-duty trucks should abide by the new standards starting from July 1, 2017, according to the government. And the new standards will definitely post new challenges to truck makers in terms of supplement facilities and cost increases.
Social supplement facilities and resources, such as State-V emissions standards-compliant diesel and gasoline, as well as AdBlue filling stations may hinder the application of State-V products, according to executives of Dongfeng Commercial Vehicle Co., Ltd. Although diesel products that comply with State-V standards have been supplied in certain areas, government coordination is still a must for substantial supply in all regions.
Long product certification cycle and high workload brought about by the new standards may also affect the application process of State-V products, according to a senior engineer of Shaanxi Auto.
The advance implementation of the State-V emissions standards will definitely increase R&D investment of enterprises and bring more cost pressures to commercial vehicle producers. Different from major commercial vehicle makers, small companies will bear more pressures in cost control. The compulsory equipment of DPF will further increase procurement cost in addition to AdBlue processors to truck makers.
As the State-V emissions standards are implemented step by step in different regions, vehicle registration in different places, as well as false licenses remains another problem for smooth implementation.
The Beijing Environmental Protection Bureau announced to implement the Beijing-V emissions standards (similar to the Euro-VI emissions standards) starting from June 1, 2015. However, most current inventories are still State-IV heavy-duty trucks, according to feedbacks of dealers. Dealers of the city are losing low-end users due to the increasing cost of Beijing-V products, while group clients, as well as customers such as large logistics companies are more receptive to Beijing-V products.
The same situation could happen in the overall implementation of State-V emissions standards.