National Press Release

SHANGHAI, April 3 /PRNewswire/ -- Aiming to solve serious environment related problems, the Chinese government took the initiative of establishing stringent emission control standards and enhanced supervision for better air quality before the Olympic Games commenced in 2008, driving the implementation of Phase IV across China.

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The implementation of Phase IV for light-duty vehicles and Phase III for heavy-duty vehicles has affected the automotive market and related industries. Original equipment manufacturers (OEMs) are facing challenges in readying their products for the market, are adopting different product strategies, and are cooperating with other participants.

New analysis from Frost & Sullivan, Analysis of Emission Standards in the Chinese Light-duty Vehicle and Heavy-duty Vehicle Market, finds that the implementation of Phase IV for light-duty vehicles and Phase III for heavy-duty vehicles has affected the automotive market and related industries. Original equipment manufacturers (OEMs) are facing challenges in readying their products for the market, are adopting different product strategies, and are cooperating with other participants.

"Concerned about the rising environmental problems, the Chinese government has implemented emission standards of a higher criterion," says Frost & Sullivan Research Analyst Jenny Wang. "Innovation in related technologies such as engine and emission control systems is supporting this cause."

Emission from heavy-duty vehicles is becoming a serious issue. The government is determined to strengthen emission control by enhancing the laws and regulations at a higher level along with stringent supervision. The government is determined to accelerate the implementation of tighter standards for emission in order to catch up with the standards of western countries.

The emission control procedures of new vehicles is ridden with challenges such as unacceptable emission conformity, noncompliance of key spare parts related to emission, faulty enterprise self-management, inspection evasion, problems in the sale link, and improper registration.

Due to strict emission standards, local automotive OEMs face greater challenges than joint venture OEMs. This is particularly in terms of access to sophisticated technologies and cost pressures. At the same time, international spare part suppliers are getting more competitive in the process of standards implementation, restraining smaller, local suppliers.

"Automotive OEMs are encouraged to add new engines to existing models and develop innovative products to meet higher emission control requirements," concludes Wang. "This is a better strategy than withdrawing products from markets with a higher emission criteria or merely improving the catalytic converter."

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SOURCE Frost & Sullivan