Author: Li YuanYuan, DianGuan
Key Points：
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Shanghai has decided to introduce new policies regarding the registration of new energy vehicles, but the specific standards have not been determined yet. It may refer to the standards of central subsidies.
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At least 7 major car companies and 9 car models will suspend registration as of mid-April, including local automaker SAIC Roewe.
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Executives from involved companies oppose using car length or price as criteria for registration standards. They believe that preferential policies should not be limited to the wealthy, and any car models that enter the national recommended catalog should be eligible for new energy license plate.
On May 10th, many new energy vehicle enthusiasts were waiting for a piece of news- Shanghai’s new energy vehicle registration policy.
However, the policy did not come as scheduled according to the inquiry of “Electric Vehicle Observer” to relevant companies and insiders of the regulatory department. The new energy vehicle registration policy will indeed be tightened, but the criteria will not be set as “less than 4.6 meters in length, priced below 100,000 yuan”, but will follow the idea of central subsidy policy standards.
Since the implementation of the most stringent “vehicle restriction policy” in October 2020, the number of new energy passenger vehicles has been booming in Shanghai, far exceeding that in other cities across the country, including “pure electric city” Beijing. This poses a huge challenge to urban management in Shanghai.
Several small electric vehicle companies have also confirmed that since mid-April, the registration process in Shanghai has been halted for the reason of “waiting for new policies.”
How Shanghai will tighten its license plate issuance policy? If not restricted by price and size, which car models will ultimately be left out of the coveted Shanghai car plates? This adjustment in Shanghai’s vehicle registration policy involves a lot.
Is Shanghai unable to bear the burden of the new energy vehicle boom?
Recent news on the tightening of the registration policies and the suspension of micro electric vehicles from getting Shanghai plates have been swirling around the new energy vehicle circle in the past few days. The head of an electric vehicle company also confirmed to “Electric Vehicle Observer” that its pure electric vehicle models have had their registration processing suspended since mid-April, with the reason being “waiting for the new policies.”
Some media sources have quoted staff members of some vehicle administration offices in Shanghai as saying, “The new policies will be announced on May 10th at the earliest, and no information can be disclosed before that.”
Now, May 10th has passed, and people did not wait for the promised new policy. However, “Electric Vehicle Observer” has learned through interviews with multiple companies and regulatory authorities that the so-called new policy is not a rumor, and the tightening of registration standards is a must for Shanghai.
This is closely related to the rapid growth of new energy vehicles in Shanghai in the past six months.
On October 24, 2020, the Traffic Police Division of Shanghai Public Security Bureau announced adjustments to the restrictions on non-local license plates, which further boosted the new energy vehicle market in Shanghai.According to insurance data, Shanghai’s new energy passenger car market has undergone significant growth since November 2020, contrary to the previous moderate fluctuations, with the insured amount increasing by more than 1.3 times compared to the previous month.
Also since November, Shanghai has continuously won the national championship for new energy passenger car insurance for several months.
From January to March 2021, the insured amount of new energy passenger cars in Shanghai reached a record-breaking 58,000, almost half of the total insured amount for the city in the previous year, leaving other cities in China far behind in terms of both pure electric and plug-in hybrid vehicle models, including Beijing and Shenzhen, which ranked second and third place.
The prosperous sales of new cars have brought tremendous pressure to the management of urban vehicles in Shanghai.
Cui Dongshu, Secretary-General of the China Passenger Car Association, once commented in his article, “Shanghai’s Green License Plate Policy for New Energy Vehicles Should Be Adjusted According to Penetration Rate.” He stated that due to the small space characteristics of Shanghai, the previous comprehensive green license plate policy for new energy vehicles itself was an unsustainable policy. At that time, the market scale in Shanghai (the initial promotion stage) was relatively small, and the policy was relatively loose, so the policy would definitely need to be drastically tightened in the future, which was an inevitable trend.
But the more critical issue is, what is the standard for Shanghai license plate restriction?
The first new policy that is circulated in the community is to restrict micro pure electric vehicles with small size and low price – one is less than 4.6 meters in length, and the other is less than 100,000 yuan in price. Several pure electric vehicle models that have been suspended in Shanghai for license plate approval are also A00-level pure electric vehicles.
The first hit is the star model, the Wuling Hongguang Mini EV.
The news that tightened the license plate policy in Shanghai, hitting the top of the hot search rankings, is precisely the news that this car cannot be plated. Some curious people have analyzed that Shanghai wants to drive the Hongguang Mini EV out of Shanghai because this car’s level is too low, and some believe that the new policy is aimed at this magical car, while others believe that the new policy is aimed at protecting local new energy vehicle companies.
However, all these statements seem to be difficult to stand on.
From the insured number of Shanghai’s new energy passenger cars in 2020, only three models that did not meet the 4.6-meter length standard were among the top 20, namely Roewe eRX5, Roewe ERX5, and Hongguang Mini EV, with Hongguang Mini EV insured for only 2,665 vehicles throughout the year.
It is difficult to justify the introduction of specific policies targeting a certain vehicle model.
Source: Insurance policies and the “Electric Vehicle Observer” statistics
Regarding the rumor about the 4.6-meter car length standard, another executive of a mainstream new energy vehicle company said flatly, “It is groundless. If the standard is set at 4.6 meters, too many models will be affected.”
An insider close to the management department of Shanghai’s new energy vehicles also told the “Electric Vehicle Observer” that although the new policy will be introduced, it will not restrict cars with a 4.6-meter car length or those priced at 100,000 yuan. The specific standards are yet to be known until the policy is finalized.
Nevertheless, micro electric vehicle companies inevitably feel targeted. After all, several local car company executives in Shanghai have said that their new energy vehicle models have not stopped issuing license plates, and everything is normal. Why the suspension of license plates specifically for micro electric vehicles?
There is a saying that since last year, the number of micro electric vehicles in Shanghai has surged. Insurance policies show that from last year to March this year, the proportion of A00 pure electric vehicles in Shanghai has reached 6%, much higher than historical levels, which has also increased the difficulty of urban management.
However, the responsible person of an electric vehicle company believes that since they were able to sell in Shanghai before, it means that they meet the national regulatory requirements and Shanghai’s admission criteria, and they should be allowed to continue to sell. From the user’s point of view, income and demand are different, and not everyone can or is willing to buy high-end cars priced at twenty or thirty thousand yuan.
In his opinion, the preferential policy for new energy vehicles should be for the benefit of the general public rather than limited to high-income groups. Shanghai’s new energy license plate policy is already more cumbersome than other cities, and he believes that restricting micro electric vehicles’ license plate issuance is inappropriate.
According to the “Measures for Encouraging the Purchase and Use of New Energy Vehicles in Shanghai,” released in February, consumers who purchase new energy vehicles for non-commercial purposes and whose personal names are not registered under the city’s special license plate quota are eligible to receive a special license plate quota for free on the principle of controlling the total number of non-operating passenger cars.
In less than two months, some qualified new energy vehicle consumers have encountered difficulties in getting a license plate. Although the new policy has not yet been introduced, there are already complaints from the public about Shanghai’s suspension of micro electric vehicle license plates.
The moment has come to alleviate the pressure on city traffic management while continuing to accelerate the development of new energy vehicles and provide consumers with a reasonable response, which will test the management capabilities of Shanghai’s government departments.
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.