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Only 79 Chinese passenger vehicle enterprises reach CAFC target in 2016

BEIJING – The Ministry of Industry and Information Technology (MIIT) released the 2016 Corporate Average Fuel Consumption Annual Report (Report) on its website on April 5. The rate of Chinese passenger vehicle enterprises which met the corporate average fuel consumption (CAFC) requirement declined in 2016 and only 79 companies met the CAFC target last year.

Of the 122 passenger vehicle enterprises in the Report including 95 domestic companies and 27 passenger vehicle importers, those meeting the set fuel consumption target fell from 85 in 2015 to 79 in 2016 down 8.5 percentage points to 64.8 percent. There were 65 Chinese passenger vehicle companies which failed to meet the CAFC standard in 2016, accounting for 68.4 percent, which indicated a drop of 6.9 percentage points compared with last year. Among the 27 passenger vehicle importers, 13 missed their CAFC target, accounting for 51.9 percent, while that level was 66.7 percent in 2016.

China officially carried out the State IV fuel consumption standard in 2016 and has set the CAFC target at 6.7L/100 km. Judging from the 2016 CAFC target, the percentage of companies meeting the targets rose in 2016 over that of the previous year. MIIT data showed that only 30 companies’ CAFC figures were lower than 6.9L/100 km, accounting for about 25.9 percent, while in 2016, the number of companies with CAFC figures lower than 6.7L/100 km increased to 48, with the percentage rising to 39.3 percent.

The reason for the decreased company target fulfillment and the increased fulfillment of fuel consumption targets can be traced to the ever growing number of new energy vehicle enterprises. According to the Report, up to five passenger vehicle companies’ CAFC figure is zero, which means that all of their output in 2016 were new energy vehicles.

BMW-Brilliance topped the Chinese passenger vehicle companies’ CAFC list in 2015 at 80.25 percent, while in 2016, BYD got the top spot with 29.9 percent (excluding the above mentioned five NEV companies and those passenger vehicle companies with less than 100 units in yearly output), followed by other nine companies including Geely, BAIC Group and Chery with CAFC ratio all lower than 80 percent. The development of NEVs has alleviated some enterprises’ energy saving and emissions reduction burdens to an extent.

 “Reform of energy-saving and emissions reduction technologies in the automotive industry should be carried out firmly and despite the short-term profit losses and market-share shrinking, attention should be paid to the upgrading of traditional energy-saving technologies,” said Ou Xunmin, vice director of China Automotive Energy Research Center of Tsinghua University.

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