Chen Hong, the vice chairman of SAIC Motor Group and a member of the National People's Congress, has submitted two significant proposals during this year’s two sessions, drawing considerable attention from industry experts. In an interview, Chen shared his insights, emphasizing the importance of implementing the scientific development concept to build a sustainable automobile industry. He also proposed the "Recommendation on Promoting the Construction of a Recycling Economy and Encouraging Domestic Auto Parts Remanufacturing," which has gained widespread recognition.
Chen pointed out that with China's rapid economic growth, the pressure on energy consumption and environmental protection from traditional vehicles is increasing. According to conservative estimates, if traditional internal combustion engine technology continues to be used, by 2020, China’s total vehicle fuel consumption could reach 250 million tons. The environmental impact of emissions from traditional vehicles is severe, contributing significantly to the greenhouse effect through carbon dioxide emissions. This year, China may become the world's largest emitter of carbon dioxide, facing intense international pressure. Air pollution data from cities like Beijing and Shanghai shows that vehicle exhaust accounts for up to 75% of harmful gas emissions in urban areas.
Among various new energy technologies, hybrid power appears to be the most practical solution to address the current challenges between rising auto demand, environmental concerns, and energy issues in China. Compared to fuel cells and alternative fuels, hybrid vehicles offer better economic and emission performance, with fuel efficiency 10% to 30% higher than traditional cars and emissions reaching Euro 4 standards. This makes their industrialization more promising.
Currently, under national planning and the efforts of manufacturers, China has made initial progress in producing hybrid vehicles. However, high R&D costs, limited market size, and low levels of domestic component technology remain major obstacles to the domestic industrialization of hybrid vehicles. There is still a significant gap compared to developed countries in terms of supportive policies for hybrid vehicle development.
Chen Hong believes that government support should be strengthened across research, production, sales, and consumer use stages. He recommends that the government focus on nurturing key domestic hybrid component companies. Regarding production and sales, he suggests that the government increase tax incentives for companies engaged in hybrid vehicle R&D. He also advocates for the introduction of a differential vehicle tax based on fuel economy and pollutant emissions as soon as possible.
In terms of consumer use, the government should leverage its procurement power to demonstrate the benefits of hybrid vehicles. By offering tax reductions and exemptions, it can help lower usage costs and provide priority access for hybrid vehicles on roads. These measures are essential to accelerate the adoption and industrialization of hybrid electric vehicles in China.
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